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:

Audience Compliance

The extent to which an audience acts in accordance with the requests, guidelines, or directions provided by a communicator or message.

Negative Outcome

An unfavorable or adverse result stemming from a particular action or decision.

Routine Messages

Regular, everyday communications that convey standard information in a business or organizational context.

Digital Technology

Electronic tools, systems, devices, and resources that generate, store, or process data.