Sources of Microeconomic Failure That May Require Government Intervention Include

question 103

Multiple Choice

Sources of microeconomic failure that may require government intervention include all of the following except:

• A) The abuse of market power.
• B) The need for private goods.
• C) The need for public goods.
• D) Inequities in the distribution of goods and services.

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Definitions:

Market Interest Rate

The current rate of interest available in the market that borrowers must pay to obtain funds.

Carrying Value

The book value of assets and liabilities on a company’s balance sheet, often different from the market value.

Discount On Bonds

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Premium

The amount paid in excess of a standard cost or the face value of a financial instrument, often associated with insurance policies, bonds, and options.