An example of market failure is __________.

• a.) a cigarette company pays for advertising for its product
• b.) a chemical company overproduces its product, regardless of externalities
• c.) a price floor creates a surplus in the market
• d.) the government has to take over certain companies that are failing due to high costs and low sales

The bribery of corrupt government officials is an example of __________.

• a.) regulatory intervention
• b.) principal-agent problems
• c.) information asymmetry
• d.) negative externalities