Which of the following statements about the way markets allocate resources is most accurate from society's perspective?

Question

Quizplus · Accepted Answer

While markets are generally efficient at allocating resources, there are situations where the market may not lead to the optimal allocation of resources from society's perspective. For example, markets may not take into account externalities such as pollution or may not provide public goods. Therefore, society may need to intervene through government policy to ensure that resources are allocated in a way that is in the best interest of the public. Option A is too strong of a statement and not always true. Option C is a relative statement and not always true. Option D is too absolute and not always true.

Which of the Following Statements About the Way Markets Allocate