Word Bank constraints inefficiently below purposefully efficiently property public above objective trading 1. A market is any arrangement that people have for with one another. 2. Market performance refers to how markets do their job of providing arrangements for mutually beneficial trade. 3. A(n) is anything people want to achieve. 4. In a world of scarcity, alternatives are never unlimited, and are universal. 5. rights are legal rules that establish what things a person may use or control. 6. Rationality is acting to achieve an objective, given constraints on available opportunities. 7. A market failure is a situation in which a market coordinates choices in a way that achieves resource usage 8. Insufficient competition or monopoly markets cause a failure because firms charge a price their opportunity costs, making the market price too high. 9. goods fail to coordinate market choice in a way that achieve efficient resource use because they lead to a free rider problem. 10. In the case of harmful externalities, market failure occurs because prices are too low and fall opportunity costs