Asked by
giuliana zuniga
on Nov 05, 2024
Verified
Market failure results in
A) inflation.
B) waste.
C) budget deficits.
D) Pareto optimality.
Market Failure
A scenario where the free market fails to allocate resources efficiently, resulting in negative impacts on social welfare.
Pareto Optimality
The scenario in which resources are allocated in a manner that prohibits enhancing one individual's situation without negatively impacting another's.
- Acquire knowledge about the concept of market failure and its contributing factors.
Verified Answer
NB
Learning Objectives
- Acquire knowledge about the concept of market failure and its contributing factors.