Which of These Is NOT an Example of Market Failure

question 181

Multiple Choice

Which of these is NOT an example of market failure?

• A) Water is polluted by a paper company located by a river.
• B) Air is polluted by a manufacturing firm.
• C) Competition leads firms to provide products at the lowest possible price.
• D) Consumers must buy water from one local water utility.

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Definitions:

Withholding Allowances

Deductions allowed on a paycheck, used to be calculated to reduce the amount of income tax withheld from an employee's salary.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund the unemployment insurance system.

Liability

A company’s or individual’s legal financial debts or obligations that arise during the course of business operations.

Percentage Method

An IRS method for calculating the amount of taxes to withhold from an employee's paycheck based on income brackets.