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Name the Two Market Failures Highlighted by De George That

question 11

Short Answer

Name the two market failures highlighted by De George that help explain the Production Obligation. One is related to a type of drug while the other is related to disease.


Definitions:

Speculative Motive

The intent to hold cash or assets in anticipation of future price changes to make a profit.

Money Supply

The aggregate money supply in an economy at a particular time, covering cash, coins, and deposits in checking and savings accounts.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any advance notice to the bank.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing in a year or less, representing a secure, low-risk investment option.

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