_____ is a problem that causes the market economy to deliver an outcome that does not maximize efficiency.
A) Internalities
B) Externalities
C) Moral hazard
D) Market failure

Question

Quizplus · Accepted Answer

Market failure occurs when the market system fails to allocate scarce resources to their most efficient uses, resulting in a net loss of economic and social welfare. It can arise due to several reasons such as externalities, public goods, market power, incomplete information, and others. Market failure requires government intervention to correct or alleviate the problem.

_____ Is a Problem That Causes the Market Economy to Deliver