Which One of the Following Is an Example of a Market

question 18

Multiple Choice

Which one of the following is an example of a market imperfection in the domestic capital market?

• A)transactions costs
• B)costs of obtaining information
• C)ceilings on interest rates
• D)restrictions by nationality of investor

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Definitions:

Agriculture Subsidies

Government payments to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such goods.

Social Security

A governmental program designed to provide financial support to individuals during retirement, disability, or unemployment.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.

Government Size

Refers to the scope, scale, and range of activities and services provided by a government, including its regulatory and fiscal operations.