Markets can be expected to automatically compensate for problems of external
costs or external benefits.

Name: Markets can be expected to automatically compensate for problems of external costs or external benefits.
Brand: Quizplus
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Question

Markets can be expected to automatically compensate for problems of external
 costs or external benefits.

Quizplus · Accepted Answer

Markets often fail to account for external costs (negative externalities) or external benefits (positive externalities) because these costs or benefits are not reflected in the market prices, leading to market inefficiencies that require intervention to correct.

Markets Can Be Expected to Automatically Compensate for Problems of External