When Misallocation of Resources for Production of a Good Results

question 146

Multiple Choice

When misallocation of resources for production of a good results in spillover effects on third parties, there is a

• A) market failure.
• B) government failure.
• C) legislative failure.
• D) productive failure.

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Definitions:

Influencers

Individuals with the power to affect the purchasing decisions of others due to their authority, knowledge, position, or relationship with their audience.

WOM

Word Of Mouth; the process of information or recommendations passing from person to person, especially regarding product or service quality.

Consumers

Individuals or households that purchase goods and services for personal use.

Consumer Goods Sales

Consumer goods sales involve the transaction and purchase of products that are intended for personal use by consumers, ranging from food and clothing to electronics and appliances.