Asked by
Denise Norris
on Nov 05, 2024Verified
Which one of the following is not a source of market failure?
A) externalities
B) public goods
C) imperfect information
D) price increases
Market Failure
A circumstance where the distribution of goods and services through an unregulated market fails to be efficient, frequently resulting in a decrease in overall social welfare.
Externalities
Expenses or advantages impacting individuals who did not decide to bear those expenses or advantages.
Public Goods
Goods or services that are available to all members of a society, typically provided by the government, with no one excluded from benefitting.
- Identify the sources of market failure, including externalities, public goods, and imperfect information.
Verified Answer
TP
Learning Objectives
- Identify the sources of market failure, including externalities, public goods, and imperfect information.