Question

Market failure occurs when A. the market system fails to allocate resources to each individual according to their needs. B. the market system fails to allocate resources to each individual according to their abilities. C. the market system fails to allocate an equal share of resources to all individuals. D. the unrestrained market economy leads to too few or too many resources going to a specific economic activity.

Answer 1

Answer:

b. the market system fails to allocate resources to each individual according to their abilities.

Explanation:

In economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.