market failure

Question 1

market failure

Answer 1

when the price mechanism fails to allocate scarce resources effectively

Question 2

complete market failure

Answer 2

occurs when the markets completely doesn’t supply products are all- missing market

Question 3

partial market failure

Answer 3

when the market does actually function but it produces either the wrong quality of product or at the wrong price

Question 4

reasons for market failure

negative externalities

Answer 4

this causes the social cost of production to exceed the private cost

Question 5

reasons for market failure

positive externalities

Answer 5

causing the social benefit of consumption to exceed the private benefit

Question 6

reasons for market failure

imperfect information

Answer 6

some merit goods are under produced while demerit goods are over consumed

Question 7

reasons for market failure

Monopoly

Answer 7

underproduction and high prices causing consumer welfare to be damaged

Question 8

reasons for market failure

Factor immobility

Answer 8

causes unemployment and loss of productive efficiency

Question 9

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Answer 9

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