A Common Theme Among Examples of Market Failure Is

question 154

Multiple Choice

A common theme among examples of market failure is

• A)the good being provided harms society in some systematic way.
• B)some item of value does not have an owner with the legal authority to control it.
• C)cost-benefit analysis will show that private markets should provide the goods and services.
• D)government intervention decreases the social benefits.

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Definitions:

Dividend Payout

The part of profits paid out to shareholders as dividends.

Earnings Per Share

The portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

Reverse Split

A corporate action where a company reduces the total number of its outstanding shares to increase the share price without changing the company's overall market capitalization.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders, including those held by institutional investors and company officers.