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.

---

Definitions:

Price Rise

An increase in the cost of goods or services, which can affect purchasing power and economic indicators like inflation.

Original Bundle

A combination of goods and services initially selected by a consumer or economic agent, before considering trades or changes.

Price Rise

An increase in the monetary value of goods or services over time.

Original Bundle

Describes a combination of goods and/or services that an individual initially chooses based on their preferences and income constraints.