When the Market Does Not Result in an Efficient Allocation

question 91

Multiple Choice

When the market does not result in an efficient allocation of scarce resources, economists call this:

• A) market dropout.
• B) normative economics.
• C) market disincentives.
• D) market failure.

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Definitions:

Freight-In

The cost associated with transporting goods into a warehouse or to the purchaser, often added to the cost of the inventory.

Purchase Order

A business document and initial formal proposal provided by a purchaser to a vendor, specifying the kinds, amounts, and settled prices for goods or services.

Purchase Requisition

An official request form used within organizations to propose the purchase of specific goods or services.

Purchase Demand

The quantity of goods or services that consumers are willing and able to buy at a given price within a specific time period.