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:

Type A Profile

A personality pattern characterized by high levels of competitiveness, impatience, aggression, and a constant sense of urgency.

Problem-Focused Coping

A strategy to deal with stress by identifying and addressing the problems causing the stress in a direct manner.

Emotion-Focused Coping

A coping strategy aimed at managing the emotional response to a stressful situation rather than confronting the root cause directly.

Homeopathy

A system of alternative medicine based on the principle that like cures like, using highly diluted substances that cause symptoms in healthy people to treat similar symptoms in sick people.