Question

Market failure occurs when Question 22 options: an unrestrained market economy leads to too few or too many resources going to a specific economic activity. one good is superior to another and drives it out of the market. a good is too expensive for the market to provide. the stock market experiences a very large loss.

Answer 1

Answer:

The correct option is option a.

Explanation:

The given options are

A:an unrestrained market economy leads to too few or too many resources going to a specific economic activity.

B: one good is superior to another and drives it out of the market.

C:a good is too expensive for the market to provide.

D: the stock market experiences a very large loss.

Market failure is linked with the unrestrained market leading to imbalance in the resource distribution.

Option B is not correct it, as the one good being superior to another good is not a reason for market failure.

Option C is not correct because it is the failure of the product not the failure of the market.

Option D is not correct as it is a financial crises, not a market failure.