What Is Meant by the Term "Market Failure

question 45

Multiple Choice

What is meant by the term "market failure"?

• A)that a small group in society is affected
• B)that allocative efficiency has not been achieved
• C)that the market economy is a failure
• D)that one or more markets are not in equilibrium
• E)that the free market has failed to achieve desirable social goals

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Definitions:

Indorsement

A signature or instruction written on the back of a negotiable instrument, such as a check, transferring ownership or specifying some other transaction.

Bank

A financial institution licensed to receive deposits and provide loans to individuals and businesses.

Holder

An individual or entity that possesses or owns a particular document, often used in the context of financial instruments.

Payable to Bearer

A financial instrument or document that allows the person in possession (the bearer) to receive the assets specified therein, without the need to prove identity.