Market Failure Can Occur Even When the Price Signals Are

question 14

True/False

Market failure can occur even when the price signals are accurate.

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Definitions:

Third-Party Payments

Transactions in which the person making a payment is not directly receiving the good or service, often seen in healthcare and insurance.

Healthcare Prices

The cost associated with medical services and products, which can vary widely depending on a variety of factors.

Economize

The act of using resources efficiently, especially to reduce costs.

Payroll Tax

A tax imposed on employers or employees, and is usually calculated as a percentage of the salaries that employers pay their staff.