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

Question

Quizplus · Accepted Answer

Market failure occurs when the free market system leads to an inefficient allocation of resources, resulting in a wastage of economic resources. This could happen due to incomplete information, externalities, public goods, or monopolies, and it can lead to a loss of economic efficiency and decreased social welfare. Trade deficit refers to a situation where a country imports more than it exports. Black market refers to illegal trade in goods or services. Inflationary spiral refers to a situation where inflation leads to a further increase in prices, causing a continuous rise in the cost of living.

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