Each of the Follow Is a Source of Market Failure

question 9

Multiple Choice

Each of the follow is a source of market failure except

• A)public goods.
• B)externalities.
• C)monopolies.
• D)inferior goods.

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Definitions:

Low-interest Loans

Loans offered with a lower than average interest rate, typically provided to encourage borrowing or stimulate economic activity.

Exports

Commodities or services developed in one country and exported to buyers in another country.

CAFTA

The Central American Free Trade Agreement, a trade agreement between the United States and Central American countries to reduce trade barriers.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries from foreign competition.