Demand-Side Market Failures Occur When

question 264

Multiple Choice

Demand-side market failures occur when

• A)demand curves don't reflect consumers' full willingness to pay for a good or service.
• B)demand curves don't reflect the full cost of producing a good or service.
• C)government imposes a tax on a good or service.
• D)a good or service is not produced because no one wants it.

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Definitions:

Missouri Compromise

An agreement passed in 1820 between the pro-slavery and anti-slavery factions in the United States Congress, involving the regulation of slavery in the western territories.

Federal Government

The national government of a federation, such as the United States, which holds the authority to govern a nation as a whole, distinct from state or local governments.

Slaves

People forced into servitude, deprived of personal freedom.

Harriet Tubman

An American abolitionist and political activist who escaped slavery and subsequently made some thirteen missions to rescue approximately seventy enslaved people using the network of antislavery activists and safe houses known as the Underground Railroad.