When There Is Market Failure

question 21

Multiple Choice

When there is market failure

• A)Government intervention is always beneficial.
• B)A laissez-faire approach is the best policy.
• C)Government intervention is beneficial only in the case of natural monopolies.
• D)Government intervention is beneficial only when the marginal benefit of intervention exceeds the marginal cost.

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Definitions:

Sampling Distribution

A probability distribution of a statistic obtained through a large number of samples drawn from a specific population.

Chi-square Distribution

A probability distribution that arises in statistics as the distribution of a sum of the squares of independent standard normal random variables.

P-value

In statistical hypothesis testing, it represents the probability of observing a test statistic as extreme as, or more extreme than, the value observed under the assumption that the null hypothesis is true.

Sample Data

Sample data refers to a subset of a population selected for measurement, observation, or questioning, to provide statistical analysis.