ECONOMICS
MARKET FAILURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
external benefits
|
|
|
private benefits
|
|
|
social benefits
|
|
|
None of the above
|
Detailed explanation-1: -Social benefit is the total benefit to society from producing or consuming a good/service.
Detailed explanation-2: -the private benefit of consumption and the social benefit of production. What is a market failure? A market failure is when the market fails to produce the efficient level of output.
Detailed explanation-3: -An externality is a cost or benefit that stems from the production or consumption of a good or service.
Detailed explanation-4: -A positive externality exists if the production and consumption of a good or service benefits a third party not directly involved in the market transaction. For example, education directly benefits the individual and also provides benefits to society as a whole through the provision of more…