A scenario in which an economic system is unable to produce or distribute needed or wanted goods and services-especially public or nonexcludable goods-coincides with ______.

Question

Quizplus · Accepted Answer

Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. This can particularly happen with public goods, where the market fails to provide goods or services that are nonexcludable and nonrivalrous, due to issues like the free rider problem.

A Scenario in Which an Economic System Is Unable to Produce