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.

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Definitions:

Third Restatement

The Third Restatement refers to updated versions of the American Law Institute's restatements on various areas of law, providing a contemporary summary of common law principles.

Principal Goes Bankrupt

When a principal goes bankrupt, it refers to a situation where the main party in a financial or business agreement is unable to repay debts and legally declares bankruptcy.

Discharge

The act of formally releasing someone from their duties, often used in the context of employment termination.

Dismissal

The act of officially removing someone from their job, often due to inadequate performance, misconduct, or redundancy.