When the market does NOT produce the most efficient outcomes,it is known as
A) market failure.
B) corruption.
C) fraud.
D) capitalism.

Question

Quizplus · Accepted Answer

Market failure refers to the situation where the free market does not allocate resources efficiently and fails to provide an optimal outcome. This can happen due to externalities, public goods, imperfect competition, and information asymmetry, among other factors. Corruption and fraud are illegal and unethical activities that undermine the integrity of the market, while capitalism is an economic system based on private ownership of resources and the means of production, which can lead to market failure if left unregulated or insufficiently regulated.

When the Market Does NOT Produce the Most Efficient Outcomes,it