In the allocation of resources between present and future,

Question

Quizplus · Accepted Answer

The market works imperfectly in the allocation of resources between present and future. This is because individuals tend to prioritize their current wants and needs over their future ones, leading to a lack of investment in long-term projects and environmental sustainability. The market also does not account for externalities, such as the negative impact of pollution on future generations. Therefore, government intervention and regulation may be necessary to ensure a more efficient allocation of resources over time.

In the Allocation of Resources Between Present and Future