When Markets Fail, Public Policy Can

question 301

Multiple Choice

When markets fail, public policy can

• A)do nothing to improve the situation.
• B)potentially remedy the problem and increase economic efficiency.
• C)always remedy the problem and increase economic efficiency.
• D)in theory, remedy the problem, but in practice, public policy has proven to be ineffective.

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Definitions:

Problem

A situation, question, or issue that is difficult to deal with or understand, requiring a solution or answer.

Data

Quantitative or qualitative values that represent information or variables, often used for analysis or decision-making.

Specific Organization

A particular or distinct institution, corporation, or group organized for a certain purpose or activity.

Reasonable Evidence

is evidence that is sufficiently reliable and pertinent to support a logical conclusion.