Which of the Following Is Not a Market Failure

question 5

Multiple Choice

Which of the following is not a market failure?

• A) A lack of competition in some markets.
• B) Prices determined in competitive markets, which consumers, as individuals, have no control over.
• C) The presence of externalities in some markets.
• D) A lack of public goods desired by a majority of citizens.
• E) Income inequality.

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Definitions:

U.S. Economy

The economic system of the United States, characterized by a mixed economy with both private sector freedom and governmental regulation.

Incorporated

A legal status indicating that a company has been officially formed into a corporation, providing its owners limited liability protections.

Purchasing Agents

Individuals within a company responsible for acquiring goods, services, or works from external sources, usually for business purposes.