Market Failure

question 14

Multiple Choice

Market failure

• A)caused the collapse of centrally planned economies in Eastern Europe.
• B)is the consequence of government involvement in the economy.
• C)is something that never happens in a market economy.
• D)occurs when the market is unable to allocate resources correctly.
• E)occurs only when supply exceeds demand.

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Definitions:

Drum Brakes

A type of braking system using brake shoes pressed outward against a rotating drum to slow or stop a vehicle.

Disc Brakes

A type of brake that slows or stops a vehicle by squeezing brake pads against a disc or rotor attached to the wheel.

Brake Fade

A reduction in the braking power of a vehicle, often due to overheating of the brake components during heavy use.

Water Fade

A decrease in the performance of brake components due to the presence of water.