All of the Following Are Possible Reasons for Market Failure

question 138

Multiple Choice

All of the following are possible reasons for market failure EXCEPT:

• A) monopoly firms.
• B) buyers and sellers not having access to the same information regarding a good or service.
• C) public goods.
• D) extremely high prices for medical care.

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Definitions:

Expected Return

The projected return on an investment over a given period of time, factoring in various risks and the time value of money.

Single Life Annuity

A financial product that provides a stream of payments to an individual for their lifetime, ceasing upon their death.

Annuity Contract

A financial agreement between an individual and an insurance company where the individual makes a lump-sum payment or series of payments in exchange for regular disbursements starting either immediately or at some point in the future.

Expected Return

Expected return is a financial term representing the average of all possible returns for a given investment, factoring in the likelihood of each outcome.