Market Failures

question 333

Multiple Choice

Market failures

• A) prevent the price system from attaining economic efficiency.
• B) result in quantities and prices that are socially desirable.
• C) strengthen economic efficiency by forcing unprofitable firms to close.
• D) weaken the argument for government intervention in the economy.

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Definitions:

Undesirable Behavior

Actions or conduct deemed inappropriate or unacceptable based on societal norms or individual standards.

Difficult Initiation

The idea that undergoing a challenging process to enter a group can increase an individual's value and loyalty to that group.

Mild Initiation

A procedure in which an individual undergoes a relatively easy or minor ordeal before gaining access to a new group or taking part in an activity, potentially affecting the value placed on the membership or activity.

Boring Discussion

An uninteresting or tedious conversation that fails to capture the attention or engagement of the participants.