Economists Use the Term "Market Failure" to Refer to Those

question 119

Multiple Choice

Economists use the term "market failure" to refer to those free-market situations where

• A)income is not distributed equitably.
• B)allocatively efficient outcomes are not achieved.
• C)externalities are present in the economy.
• D)the economy is not in equilibrium.
• E)government has intervened in the economy.