A Market Failure Likely Occurs When

question 180

Multiple Choice

A market failure likely occurs when

• A) the consumption of a good generates an effect on third parties.
• B) firm production lacks an externality on third parties.
• C) consumers are sovereign but firms are not sovereign.
• D) there is no much competition in a market.

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Definitions:

Government Corporation

A legal entity created by a government to undertake commercial activities on its behalf.

Federal Bureaucrats

Government officials and employees working within the agencies of the federal government, often non-elected positions responsible for implementing policies.

Clean Air Act

The Clean Air Act is a comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to protect public health and the environment.

Bureau-Level Agency

A specific tier within a federal department focused on a particular area of administration or regulation.