Market Failures in Competitive Markets Quiz

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

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)

Perfect competition and imperfect competition

Monopoly and oligopoly

Demand-side and supply-side (correct)

Informational and spillover

<p>Presence of informational problems</p> Signup and view all the answers

<p>To explain how and why market failures can arise and how they might be corrected</p> Signup and view all the answers