Accounting Multiple Choice Question – 14 July 2025

Anti-monopoly legislation is an example of government intervention to address market failure caused by?

Select ONE answer:

1. Market imperfection
2. Externality
3. Asymmetric information
4. Inequity

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Monopoly is the antithesis of perfect competition and is, therefore, a market imperfection.
2. Not correct
3. Not correct
4. Not correct

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