When Market Failures Occur

question 346

Multiple Choice

When market failures occur,

• A) the invisible had will correct for the market failures.
• B) the price system will correct the market failures.
• C) people will reduce their consumption.
• D) the government can step in to correct the market failure.

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Definitions:

Traumatic Experiences

Events or situations that cause psychological trauma due to their distressing nature.

Contingency Management

A behavioral therapy that rewards individuals for achieving specific goals, such as abstinence from substance use, to encourage positive behavior changes.

Positive Activities

Positive activities are actions or pursuits that encourage well-being, happiness, and a positive mood, often involving engagement with enjoyable or fulfilling tasks.

Journal Writing

The process of recording personal thoughts, experiences, and reflections regularly in a diary or journal.