Market Failure Can Be Caused by

question 205

Multiple Choice

Market failure can be caused by

• A)too much competition.
• B)externalities.
• C)low consumer demand.
• D)scarcity.

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Definitions:

Money Market Fund

A type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents and is considered to be relatively low risk.

Portfolio Management

The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.

Growth Stock Fund

A mutual fund that invests primarily in the stocks of companies believed to have above-average potential for growth in revenue and earnings.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are instead issued at a substantial discount to their face value, with the face value being paid at maturity.