Due to Pigou's "defective telescopic faculty," a market economy is inefficient in allocating resources between the present and the future.

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According to Pigou, people tend to have a "defective telescopic faculty," meaning they focus more on short-term gains rather than long-term effects. This leads to market failure as resources may not be allocated efficiently between the present and the future.

Due to Pigou's "Defective Telescopic Faculty," a Market Economy Is