Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is market failure?
What is market failure?
- The underallocation of resources in the production of a particular good or service
- The overallocation of resources in the production of a particular good or service
- The inability of a market to allocate resources that best satisfies the wants of society (correct)
- The inability of a market to achieve perfect competition
What is a characteristic of competitive markets?
What is a characteristic of competitive markets?
- They are immune to market failures
- They are primarily focused on public goods
- They always guarantee the correct allocation of resources
- They usually produce an assignment of resources that is 'right' from an economic perspective (correct)
What are the categories into which market failures in competitive markets fall?
What are the categories into which market failures in competitive markets fall?
- Perfect competition and imperfect competition
- Monopoly and oligopoly
- Demand-side and supply-side (correct)
- Informational and spillover
What is a reason why market failures can occur in competitive markets?
What is a reason why market failures can occur in competitive markets?
Signup and view all the answers
What is the focus of the chapter related to market failures in competitive markets?
What is the focus of the chapter related to market failures in competitive markets?
Signup and view all the answers
