Which term describes the inefficient allocation of society's economic resources?

Question

Quizplus · Accepted Answer

Market failure occurs when the market mechanism fails to allocate resources efficiently, leading to an inefficient allocation of society's economic resources. The market may fail to allocate resources efficiently due to externalities, public goods, information asymmetry, or market power. The other options - trade deficit, black market, inflationary spiral, and market slippage - refer to specific economic phenomena but do not necessarily indicate an inefficient allocation of resources.

Which Term Describes the Inefficient Allocation of Society's Economic Resources