What Is a Market Failure

question 14

Multiple Choice

What is a market failure?

• A)It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost.
• B)It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost.
• C)It refers to a situation where an entire sector of the economy (for example, the airline industry)collapses because of some unforeseen event.
• D)It refers to a breakdown in a market economy because of widespread corruption in government.

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Definitions:

Shoulder

The joint connecting the upper arm to the trunk, comprising several muscles, tendons, and the largest range of motion in the body.

Axilla

The underarm area, armpit.

Underarm Pad

A piece of material used to absorb sweat and prevent stains in the armpit area, often adhered to clothing or directly applied.

Crutches

Mobility aids used to transfer weight from the legs to the upper body during walking or standing.