The first economist to systematically analyze market failure was
A)Adam Smith.
B)Ronald Coase.
C)A. C. Pigou.
D)J. E. Meade.

Question

Quizplus · Accepted Answer

A.C. Pigou was the first economist to systematically analyze market failure in his book "The Economics of Welfare" published in 1920. He introduced the concept of externalities and proposed government intervention through taxes or subsidies to correct market failures. Adam Smith is considered the father of modern economics but did not formally address market failures. Ronald Coase, J.E. Meade, and other economists contributed to the analysis of market failure, but Pigou was the first to systematically analyze it.

The First Economist to Systematically Analyze Market Failure Was