Praxis II Citizenship

Answer: D - Lack of labor mobility is not a type of market failure. There are several types of market failure: inadequate competition, inadequate information, immobile resources, negative externalities, and failure to provide public goods. They are all deficiencies in one of the requirements for perfect competition. If a market experiences one of the deficiencies, it may enter a period of imperfect competition before it begins to fail outright.