The Term Market Failure Refers to

question 300

Multiple Choice

The term market failure refers to

• A) a situation in which the market on its own fails to allocate resources efficiently.
• B) an unsuccessful advertising campaign which reduces demand for a product.
• C) a situation in which competition among firms becomes ruthless.
• D) a firm which is forced out of business because of losses.

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Definitions:

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any prior learning or conditioning.

Concrete Operational

A stage in Piaget’s theory of cognitive development where children gain the ability to think logically about concrete events.

Intuitive

Relating to or using one's intuition, which involves understanding or knowing something instinctively without the need for conscious reasoning.

Appearances

The way that someone or something looks to others, encompassing physical presentation, clothing, and any other visual attributes.