Markets fail to allocate resources efficiently when
A) prices fluctuate.
B) people who have property rights abuse their privileges.
C) property rights are poorly enforced or not well established.
D) the government refuses to intervene in private markets.

Question

Quizplus · Accepted Answer

Markets fail to allocate resources efficiently when property rights are poorly enforced or not well established, leading to issues like externalities and lack of incentives for proper resource management.

Markets Fail to Allocate Resources Efficiently When