When Faced with a Market Failure,the Government

question 8

Multiple Choice

When faced with a market failure,the government:

• A)usually tries to redistribute the existing surplus more fairly.
• B)always takes over the market.
• C)often encourages the well-functioning firms to stay through protectionist policy.
• D)None of these statements is true.

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Definitions:

Ethics

The branch of philosophy that deals with questions of morality, including the determination of right and wrong actions and the development of moral principles to guide behavior.

Unspoken Needs

Needs or desires that are felt but not verbally expressed or directly communicated.

Unethical Things

Actions or practices that are morally wrong, typically violating widely accepted ethical principles.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity, guiding what is right and wrong.