Select which of the four includes externalities, information, and internalities.
Understand the Problem
The question is asking which of the four categories of moral limits in the market includes concepts such as externalities, information, and internalities.
Answer
Market failure
The answer is 'Market failure'.
Answer for screen readers
The answer is 'Market failure'.
More Information
Market failure occurs when the allocation of goods and services is not efficient, often due to externalities or asymmetric information.
Tips
A common mistake is not recognizing that market failures involve both externalities and informational issues.
Sources
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