Which of the Following Phenomena Is NOT an Example of Market

question 13

Multiple Choice

Which of the following phenomena is NOT an example of market failure?

• A)a positive externality
• B)moral hazard
• C)diminishing marginal returns
• D)public goods
• E)asymmetric information

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Definitions:

Expressed Agency

A legal relationship where an agent is explicitly granted the authority by the principal to act on their behalf.

Apparent Agency

The legal doctrine that allows a third party to hold a principal liable for the acts of an agent, where the principal has given the appearance of agency.

Ratification

The process by which someone gives formal consent or approval to something, often a legal or contractual agreement.

Faithless Servant Doctrine

A legal principle that allows employers to recover compensation paid to an employee who has acted disloyally or in breach of contract.