When the invisible hand does not produce optimal outcomes for the economy,there is evidence of
A)Market failure.
B)Government failure.
C)Macroeconomic failure.
D)Scarcity.

Question

Quizplus · Accepted Answer

Market failure occurs when the market fails to allocate resources efficiently, leading to suboptimal outcomes such as underproduction or overproduction of goods and services, inequality, and externalities. Government failure is a situation where government intervention results in inefficient allocation of resources. Macroeconomic failure refers to macroeconomic outcomes that fall below what is considered healthy for the economy, such as high unemployment, inflation, and recession. Scarcity is a fundamental economic problem caused by limited resources and unlimited wants. While all of these concepts are fundamental to economics, the best choice in this context is market failure.

When the Invisible Hand Does Not Produce Optimal Outcomes for the Economy,there