Asked by
Noora Sheikh
on Oct 26, 2024
Verified
When the market does NOT result in an efficient allocation of scarce resources,economists say that there has been:
A) market dropout.
B) normative economics.
C) market disincentives.
D) market failure.
Market Failure
A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.
Scarce Resources
Resources that are limited in supply and cannot meet all the demands placed on them, necessitating allocation decisions.
- Understand how the private market's response to nonexcludable and nonrival goods leads to market failure.
Verified Answer
AB
Learning Objectives
- Understand how the private market's response to nonexcludable and nonrival goods leads to market failure.
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