In a market system, which of the following is a symptom of market failure?
A)competition
B)falling prices
C)scarcity of resources
D)air pollution that those exposed object to

Question

In a market system, which of the following is a symptom of market failure?
A)​competition
B)​falling prices
C)​scarcity of resources
D)​air pollution that those exposed object to

Quizplus · Accepted Answer

Air pollution that those exposed object to is a negative externality, which is a type of market failure. In a market system, businesses and individuals are often not held accountable for the negative effects their actions or products may have on others (such as pollution), leading to an inefficient allocation of resources and societal costs that go unaddressed.

In a Market System, Which of the Following Is a Symptom