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.

Question

Quizplus · Accepted Answer

Market failure occurs when the market fails to allocate resources efficiently. This happens when the market does not take into account all the costs and benefits associated with the production or consumption of a good or service, resulting in an inefficient allocation of resources.

When the Market Does NOT Result in an Efficient Allocation