Which of the Following Is Not an Example of Market

question 23

Multiple Choice

Which of the following is not an example of market failure?

• A) Lack of competition.
• B) Externalities.
• C) Equilibrium.
• D) Extreme income inequality.

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Definitions:

Compounded

The process where interest earned on a principal amount is reinvested, resulting in interest earning interest over time.

Demand Loan

A loan wherein the lender is entitled to demand full repayment at any time without notice.

Compounded Quarterly

Interest calculated on an investment or debt four times a year.

Population Decrease

A decline in the number of people living in a specific area, often due to factors like emigration, lower birth rates, or increased mortality rates.