Which of the Following Could Be Evidence of a Market

question 179

Multiple Choice

Which of the following could be evidence of a market failure?

• A) Resources in an economy are not fully utilised.
• B) The market price of a product is above the average cost of production.
• C) There is only a handful of firms competing against each other in an industry.
• D) Market prices do not reflect true production costs.

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Definitions:

Hubble Telescope

A space telescope launched into low Earth orbit in 1990, named after astronomer Edwin Hubble, which has provided important observations and significantly advanced the field of astronomy.

Apple Computers

A technology company that designs, manufactures, and markets consumer electronics, computer software, and online services.

Motorola

An American multinational telecommunications company known for its innovation in mobile communication devices like cell phones and radios, although it has since diversified into other electronics.

Foreign-Born

Individuals who were born outside of the country in which they are currently living, excluding those born to parents stationed abroad as part of diplomatic or military service.