When Markets Fail

question 129

Multiple Choice

When markets fail:

• A)government intervention may help.
• B)the market realizes the maximum possible gains from trade given the available resources.
• C)there may still be an efficient allocation of resources.
• D)no goods and services are produced.

---

Definitions:

Ego

The component of personality in psychoanalytic theory that mediates between the demands of the id, superego, and reality.

Id

A term used in psychoanalytic theory to describe the part of the unconscious mind that contains our basic drives and instincts.

Primary Process

This term refers to the initial, unconscious way the mind operates to fulfill desires and satisfy basic needs through immediate gratification, according to Freudian psychology.

Secondary Process

In psychoanalytic theory, it refers to the rational and conscious thought processes involved in problem-solving and decision-making.