ECONOMICS (CBSE/UGC NET)

ECONOMICS

MARKET FAILURES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
TWO ANSWERS ARE CORRECT:Market failure occurs:
A
The free market fails to open on time
B
Free markets fail efficiently allocate resources
C
Price mechanism is NOT low enough for all consumers to afford the good
D
Price mechanism fails to account for all costs and benefits associated with consumption of a product
Explanation: 

Detailed explanation-1: -The two leading causes of market failure are externality and market power.

Detailed explanation-2: -Market failures can be corrected through government intervention, such as new laws or taxes, tariffs, subsidies, and trade restrictions.

There is 1 question to complete.