ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Government is the problem.” In laissez-faire, the government allows capitalism to run its own course with as little interference as possible.

Detailed explanation-2: -The main types of market failure include asymmetric information, concentrated market power, public goods and externalities.

Detailed explanation-3: -Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market. Furthermore, the individual incentives for rational behavior do not lead to rational outcomes for the group.

Detailed explanation-4: -Market failure refers to inefficient allocation of resources in the free market that occurs when individuals acting in rational self-interest generate less-than-optimal economic outcomes.

Detailed explanation-5: -free market, an unregulated system of economic exchange, in which taxes, quality controls, quotas, tariffs, and other forms of centralized economic interventions by government either do not exist or are minimal.