Complete the Following Statement: in the Presence of a Market

question 74

Multiple Choice

Complete the following statement: In the presence of a market failure,

• A)government action might not improve on the market outcome because sometimes public policies simply reward the politically powerful.
• B)government action might not improve on the market outcome because some leaders are not fully informed about the effects of their actions.
• C)government action can sometimes improve on the market outcome.
• D)government action will always improve on the market outcome.

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Definitions:

New Interest

The development of a curiosity or enthusiasm for a previously unexplored topic or activity.

Conditioned Taste Aversion

An acquired response where an individual associates the taste of a certain food or drink with a negative response, typically after illness.

Chili Dogs

A popular food item consisting of a hot dog served in a bun and topped with chili sauce.

Law Of Effect

One of Thorndike’s laws of learning, which states that the consequence, or effect, of a response will determine whether the tendency to respond in the same way in the future will be strengthened or weakened.