Which Is an Example of a Market Failure

question 92

Multiple Choice

Which is an example of a market failure?

• A) There are not enough tickets available to concerts of extremely popular performers.
• B) The price of medical care has risen dramatically as a result of the introduction of sophisticated equipment and techniques.
• C) Polio shots and chest x-rays provide widespread benefits to the community as a whole as well as to the individuals who get them.
• D) Extensive decreases in the prices of electronic equipment resulted in large numbers of bankruptcies in the computer industry.

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Definitions:

Clayton Act

A U.S. antitrust law enacted to prevent anti-competitive practices in their incipiency and to supplement the Sherman Antitrust Act.

Quantitative Substantiality Test

A legal assessment method used to evaluate the significance or amount of material copied in copyright infringement cases.

Tampa Electric Co.

Tampa Electric Company is an energy company providing electricity to the Tampa Bay area and other parts of Florida.

Robinson-Patman Act

A law at the federal level within the United States designed to prevent producers from conducting business in a way that undermines competitive fairness, with a specific focus on prohibiting price discrimination.