Which Type of the Market Failure Exists When the Effect

question 19

Multiple Choice

Which type of the market failure exists when the effect of one party's economic activities on another party is not taken into account by the price system?

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

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Definitions:

Statute of Limitations

Legal provision that sets the maximum time after an event within which legal proceedings may be initiated.

Unemployment Rates

The percentage of the labor force that is jobless and actively seeking employment.

Educational Levels

The stages or degrees of formal learning individuals obtain, ranging from primary education to higher education and beyond.

William Julius Wilson

A prominent American sociologist renowned for his research on urban sociology, race, and class in the United States.