A Market Failure Occurs When

question 13

Multiple Choice

A market failure occurs when

• A) A government policy fails to improve the well-being of society
• B) Buyers of a good can't get all of the good they want at the current price
• C) Sellers can't find buyers for their goods
• D) The market price of a good or service fails to reflect the costs and benefits to all consumers and producers

---

Definitions:

Present Intent To Contract

The current intention of parties to form a contract, which is necessary for establishing a binding agreement.

Code's Standards

Specific guidelines or rules within a legal, regulatory, or institutional framework that dictate the minimum acceptable levels of safety, ethics, or performance.

Contractual Liabilities

Obligations that a party is bound to fulfill according to the terms of a contract.

Definiteness Standards

Legal criteria used to evaluate the clarity and specificity of contract terms, ensuring that all essential terms are clear enough to enforce the agreement.