The presence of market failures implies that
A)money is not an effective tool for exchange in a market system.
B)there is an active role for government, even in a market system.
C)individuals and firms should strive to be self-sufficient rather than specialize.
D)command systems are superior to market systems in the allocation of resources.

Question

Quizplus · Accepted Answer

Market failures indicate inefficiencies where the market on its own does not allocate resources optimally, suggesting a role for government intervention to correct these failures.

The Presence of Market Failures Implies That