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:

RRSP

Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets, intended to support retirement.

Quarterly

Occurring or done every three months.

Compounded

A method of calculating interest where previously earned interest is added to the principal amount, and then future interest is calculated on the new total.

Quarterly

Occurring every three months or four times a year.