18) Market Failure

Question 0

Name the 6 types of market failures

Answer 0

⚫externalities

⚫️missing markets

⚫️imperfect market information

⚫️labour immobility

⚫️instability in commodity markets

⚫️government failure

Question 1

What does market failure mean

Answer 1

⚫️when free market
➡️fails to provide goods and services

➡️or provides them in wrong quantities
➡️leading to misallocation of resources in the economy