Which of the Following Is a Source of Market Failure

question 179

Multiple Choice

Which of the following is a source of market failure?

• A)unforeseen circumstances which leads 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:

Federal Agencies

Government bodies established by the legislation to perform specific functions or duties at the national level.

FCC

The Federal Communications Commission, a United States government agency that regulates interstate and international communications by radio, television, wire, satellite, and cable.

Pulsing Advertising Schedule

A marketing strategy that alternates between periods of very heavy advertising and periods of no advertising to keep the brand in the consumer's mind.

Sales Promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.