Asked by Isabella Pucci on Apr 26, 2024
Verified
When our resources are NOT allocated efficiently,we have _______________.
A) answered the basic economic questions
B) a market failure
C) a government failure
D) market equity
Market Failure
A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.
Allocated Efficiently
Refers to the optimal distribution of resources and goods in a way that maximizes the welfare or utility of consumers.
- Attain an understanding of the foundational elements of market failures, with a focus on externalities and inefficiencies.
Verified Answer
AM
Angelique MathisApr 29, 2024
Final Answer :
B
Explanation :
When resources are not allocated efficiently, it leads to a market failure. This means that the market is unable to efficiently allocate resources and provide goods and services at the optimal level. This can result in underproduction, overproduction, externalities, and public goods problems.
Learning Objectives
- Attain an understanding of the foundational elements of market failures, with a focus on externalities and inefficiencies.