Which of the Following Is a Source of Market Failure

question 172

Multiple Choice

Which of the following is a source of market failure?

• A)Unforeseen circumstances which lead to the bankruptcy of many firms
• B)A lack of government intervention in a market
• C)Incomplete property rights or inability to enforce property rights
• D)An inequitable income distribution

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules encompassing the details, complexities, and legalities of business and corporate accounting.

IFRS

International Financial Reporting Standards, a set of accounting standards globally accepted for financial reporting.

Standard of Care

The level of care and caution expected from someone who has a responsibility to act carefully.

Distributor's Liability

Legal accountability faced by distributors for selling or distributing defective products that cause harm or loss to the purchasers.