The term used to describe a situation in which markets fail to allocate resources efficiently is called
A)economic meltdown.
B)market failure.
C)disequilibrium.
D)the effect of the invisible hand.

Question

Quizplus · Accepted Answer

Market failure occurs when the allocation of resources by the market is inefficient, leading to a misallocation of resources. This can be due to various reasons such as externalities, public goods, market power, etc. Economic meltdown refers to a sudden and severe collapse of a country's economy. Disequilibrium refers to a situation where the quantity demanded does not equal the quantity supplied in the market. The effect of the invisible hand refers to the self-regulating nature of the market, where individuals acting in their self-interest leads to the optimal allocation of resources.

The Term Used to Describe a Situation in Which Markets