Which of the Following Is a Source of Market Failure

question 5

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:

Ordinary Simple Interest

Interest calculated on the principal amount only, without compounding, over a specific period.

360-Day Year

An accounting convention used for interest calculations where the year is simplified to 360 days to ease the computation process.

Exact Simple Interest

Interest calculated on the principal amount of a loan or investment, considering the exact number of days in the interest period.

365-Day Year

A standard year length used in some financial calculations, ignoring leap years.