Market failure occurs whenever "free markets fail to distribute resources efficiently".
<u>Answer:</u> Option A
<u>Explanation:</u>
The free market is a supply and demand-based economic system, with minor or zero government control. Market failure take place on the failure of efficient resource distribution, because if the demand of public will not be met on time than self life of product start decreasing and consumers may find alternatives to fulfill needs.
The causes for free market failure may be resulted from following factors like:
- positive and negative externalities,
- environmental concerns,
- lack of public goods,
- under-supply of merit goods,
- over-supply of demerit products and
- misuse of monopoly power.
Answer: False
Explanation:
Involuntary actions are the actions that are done without our thoughts or the actions that we were not conscious of when we did them e.g heart beating, eye reflexes etc.
The statement that "Psychologists have found that people are more tolerant about the risks of involuntary activities" is false.
The correct answer for the question that is being presented above is this one: "TRUE." <span>The most prominent form of a business organization is a sole proprietorship. The statement is true. Aside from the sole proprietorship, we also have the partnership, corporation, limited partnership, and limited liability company.</span>