The market system is not relied on to make all allocations because the market does not work well in all situations.

Question

Quizplus · Accepted Answer

The market system can fail to make efficient allocations in situations where there are externalities, public goods, natural monopolies or when certain individuals are excluded from participating in the market. In such cases, government intervention, regulation or social policies may be necessary to achieve desired outcomes.

The Market System Is Not Relied on to Make All