The Term "Market Failure

question 18

Multiple Choice

The term "market failure"

• A)means the same thing as "market power."
• B)refers to the dissolution of a market when firms decide to quit producing a certain product.
• C)refers to the failure of a market to produce an efficient allocation of resources.
• D)refers to government's failure to enforce the property rights of households or firms that participate in a certain market.

---

Definitions:

Voluntary

An action taken out of free will or choice, without compulsion or obligation.

Coerced

The act of compelling or forcing someone to act in a certain way by use of pressure or threats.

Internal Attributions

The process of assigning the cause of behavior to personal aspects such as traits, abilities, or feelings.

External Attributions

The process of attributing the cause of behavior to something outside the individual.