When there are too few or too many resources going to an economic activity,
A) a public good exists.
B) a market failure exists.
C) a regressive tax is in place.
D) a free-rider problem exists.

Question

Quizplus · Accepted Answer

When there are too few or too many resources going to an economic activity, it means that the market is not allocating resources efficiently. This is known as a market failure, where the market fails to produce an optimal outcome.

When There Are Too Few or Too Many Resources Going