Market Economy and Market Failure Quiz

Market failure occurs when the market is unable to efficiently allocate resources due to factors such as market power or inequality.

Trade between countries in a market economy can lead to mutual benefits and promote economic welfare.

Foreign economies have implemented market-based reforms that have proven successful in promoting economic welfare, leading to increased efficiency and overall improvement in the economy.

<p>The market system is a system where various households and firms interact to exchange goods and services, and it is organized in a way that allows for economic activity and overall improvement in the economy.</p> Signup and view all the answers

<p>It is important to recognize the potential for market failure in order to strive for a more efficient and equitable market system.</p> Signup and view all the answers