Which of the Following Statements About Market Failure Is Not

question 122

Multiple Choice

Which of the following statements about market failure is not true?

• A) Market failure causes an inefficient allocation of resources, even in a competitive market.
• B) Market failure can come from causes on the demand side or the supply side of a market.
• C) Market failure always results from some government action or policy in a market.
• D) Market failure can result from the number of sellers in a market being too few to ensure competition.

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Definitions:

Non-corporate Businesses

Businesses that are not incorporated, typified by sole proprietorships, partnerships, and limited liability companies, often subject to different tax structures.

Permanent Residents

Individuals who are granted the right to live indefinitely within a country other than their nationality without being citizens.

Household Expenditure

The total spending by households in an economy, including consumption, rent, utilities, and other expenses.

Durable Goods

Goods not immediately consumed that can be used multiple times over a period, such as appliances, cars, and furniture.