The Four Specific Sources of Market Failure Are

question 94

Multiple Choice

The four specific sources of market failure are

• A)Public goods,market power,externalities,and inequity.
• B)Private goods,market power,externalities,and inequity.
• C)Public goods,market goods,externalities,and inequity.
• D)Private goods,market goods,externalities,and inequity.

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Definitions:

Bond Indenture

A legal contract outlining the terms and conditions between the bond issuer and the bondholders.

Convertible Feature

A characteristic of some bonds or preferred stocks that allows them to be converted into a specified number of common shares, usually at the discretion of the holder.

Floating-rate Bond

A bond whose interest payments vary with market interest rates, as opposed to a fixed-rate bond.

Implicit Interest

The interest amount represented in the difference between the present value and the future value of a payment or investment.