Markets Can Be Missing

question 128

Multiple Choice

Markets can be missing:

• A) because public policy prevents the market from existing.
• B) when the production of a particular good is banned.
• C) because of a lack of accurate information between potential buyers and sellers.
• D) All of these are true.

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Definitions:

Upward-Sloping

A market scenario where the quantity supplied by producers increases as the price of the good increases, illustrating the direct relationship between price and supply.

Incidence

The measure or manner in which economic burdens or benefits are distributed among participants in a market.

Gasoline

A volatile flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.

Tax Levied

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.