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.

Question

Quizplus · Accepted Answer

All of these are true. Public policy can prevent markets from existing, such as with price controls or regulations. Production of a good can also be banned, such as with certain drugs or weapons. Lack of accurate information can lead to market failure, as buyers and sellers may not be able to make informed decisions. Therefore, all options are correct.

Markets Can Be Missing