Economics · Oct / Nov 2020 · Paper 12 · Question 5
2281Market failure
Why might a market economy fail to achieve the best use of scarce resources?
- AConsumers may lack information about which good to buy.
- BDemerit goods are underconsumed.
- CPublic goods are overconsumed.
- DMost resources are owned by the government.
As printed in the paper
Show the answer
Correct answer: A. Consumers may lack information about which good to buy.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.