Question

when there is a market failure, the market outcome is not socially optimal.
true
false
question 2
which of the following is an example of a public good?
state roads
all of these
clean air
public park
national defense

Explanation:

For Question 1: Market failure is defined as a situation where the free market does not allocate resources efficiently, meaning the resulting outcome does not match the socially optimal level of production/consumption.
For Question 2: Public goods are non-excludable and non-rivalrous. National defense is non-excludable (no one can be prevented from benefiting) and non-rivalrous (one person's benefit does not reduce others' benefit). State roads can become rivalrous during congestion, clean air is often a common resource, and public parks can have excludability/rivalry limits, making national defense the core example.

Answer:

Question 1: True
Question 2: National defense