When One Party's Economic Activities on Another Party Is Not

question 5

Multiple Choice

When one party's economic activities on another party is not taken into account by the price system we say to have the market failure of:

• A)Imperfect information
• B)Externalities
• C)Public goods
• D)Imperfect competition

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Definitions:

Adjustment

A minor change or modification made to improve a system, process, or document.

Warranty Period

The specific time period during which a manufacturer or vendor is obligated to replace or repair defective parts of a product.

Sales Promotional Material

Marketing documents or items designed to increase sales or promote the features, advantages, and benefits of products or services.

Remittance Advice

A document sent by a customer to a seller, informing the seller that their invoice has been paid.