A Factor That Is NOT a Possible Reason for Market

question 153

Multiple Choice

A factor that is NOT a possible reason for market failure is:

• A)firms having too much market power.
• B)externalities.
• C)public goods.
• D)extremely high prices for medical care.

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Definitions:

Cost-Push Inflation

Inflation caused by increases in the costs of production, such as raw materials or wages, leading to a decrease in supply and an increase in prices.

Demand-Pull Inflation

A situation where prices rise because the demand for goods and services exceeds their supply in the economy.

Aggregate Demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Aggregate Supply

The total supply of goods and services available to an economy from producers at a given overall price level and at a given time period.