When the competitive market system does not allocate resources to economically desirable goods,economists say what has occurred?
A) Market failure
B) Government failure
C) Externalities
D) Productive inefficiency

Question

Quizplus · Accepted Answer

When the market system fails to allocate resources to economically desirable goods, it is referred to as market failure. This usually occurs because of externalities, public goods, or imperfect competition. Market failure can result in the misallocation of resources and a decrease in overall economic efficiency.

When the Competitive Market System Does Not Allocate Resources to Economically