Which of the Following Is an Example of a Market

question 6

Multiple Choice

Which of the following is an example of a market failure?

• A)The local state football game is sold-out
• B)Because of concerns of impending storm threats, the local hardware store runs out of plywood
• C)Because of changes in mortgage loan requirements and regulations, fewer people qualify for mortgages
• D)The daily traffic jam on the commute to work

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Definitions:

Common Stock

Equity securities that represent ownership in a company, entitling holders to vote on corporate matters and receive dividends.

Last-in First-out (LIFO)

Last-in First-out (LIFO) is an inventory valuation method where the most recently produced or acquired items are sold first, leading to older stock being recorded in inventory.