The presence of positive and negative externalities associated with many economic activities generates __________ in our economy.
A) extra values
B) market failure
C) incompleteness
D) illegality
E) free and unfree riders

Question

Quizplus · Accepted Answer

Market failure occurs when the allocation of goods and services by a free market is not efficient, often due to the presence of externalities (both positive and negative), which are costs or benefits not reflected in market prices.

The Presence of Positive and Negative Externalities Associated with Many