What are the types of market failures? And give one specific example and describe it.

Q: The residents of a complex in a Johannesburg suburb are being disturbed by the noise and activity…

A: Market failure may be a state of affairs wherever free markets fail to allot resources with…

Q: Consequences of market failure

A: Market failure is a situation resulting from inefficient distribution of goods and services in free…

Q: What are the effects of government intervention in the market?

A: Government intervention in the market is very necessary as it leads to efficiency in the market…

Q: What are the types of market failures in an economy? and gave two examples of each.

A: Market failure occurs when the price system in the economy fails to factor in all the economic…

Q: What is the Benefit-cost ratio?

A: The process of analyzing the total benefits and total costs associated with the implementation of a…

Q: How can government prevent market failure?

A: Market failure is the scenario of inefficiency in the distribution and allocation of goods and…

Q: How did Adam Smith justify the ethics of capitalism?

A: Adam Smith's theories are frequently regarded as the foundation of modern capitalism. He advocated…

Q: What is the rule of law?

A: It is a concept in which the law is something to be obeyed by everyone either the people or the…

Q: Market failure can be caused by

A: Inefficient distribution of goods in a free market is called market failure  Some causes of market…

Q: Tell about the contestable markets with the examples

A: A contestable markets is defined as a market where there is freedom of entry and exit. This market…

Q: (a)   Identify the type of market failure, explain why it occurs and provide a solution (i)    An…

A: Market-failure is a situation where there’s a problem of inefficient-distribution of goods(g) and…

Q: Describe at least three reasons why market failure occur

A: The main reasons of Market failure occurs in the following ways:- 1.Negative Externalities:- This…

Q: Why do governments intervene in free-market systems?

A: In a free market system, there is a self-correcting market mechanism and the supply and demand in…

Q: Do you believe economic principles, like competition, apply in both private and public…

A: There will be more advantage and disadvantages to the organisations that get from maintaining the…

Q: How significant is the market failure?

A: In the theory of economics, market failure defined to be the situations when free-market allocation…

Q: In which type of economy does only the government make economic decisions?

A: The economy in which the only government make or take the economics decisions are the  CENTRALLY…

Q: Which of the market structures is the easiest to penetrate and why? Please explain.

A: There are mainly four types of Market Structures. These are Perfect Competition, Monopoly,…

Q: Give your opinion, which type of market is best to exist and why?

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: What is the closest example to a command economy?

A: The communist society refers to the command economy. In a command economy, there is a monopoly that…

Q: What is free rider problem and under which condition does it occur? Explain with an example.

A: In economics, market failure is a condition in which products and services are distributed…

Q: Why do externalities cause market failure? What types of government actions or regulations can be…

A: The answer is as follows:-

Q: Explain three ways economist define market efficient. How does efficiency relates to the economist's…

A: Externalities, monopoly, information asymmetries, and factor immobility are all examples of market…

Q: Imagine that a town of 200 people is trying to decide whether to pay for mosquito control. The town…

A: An individual's willingness to pay explains his satisfaction that he is expecting to have from a…

Q: To what extent is the economy likely to be the key external factor determining the success of…

A: In a market, firms enter to start their business in specfiic industry after analyzing the market…

Q: Explain some types of market failure

A: A market failure happens when there is a wasteful portion of assets. All in all, the genuine expense…

Q: Discuss three cases of market failure, focusing on the reasons why they fail.

A: A market failure occurs when resources are not allocated effectively in a free market economy. A…

Q: (a) Identify the type of market failure, explain why it occurs and provide a solution (i) An auto…

A: Market failure is a situation characterized by the inefficient distribution of goods and services in…

Q: Market failure can be caused by Select one: a. externalities and market power O b. government…

A: The markets refer to the place where the buyers, and sellers interact. The markets work upon the…

Q: In a market system, provide an example for when government can enhance or harm any of the processes…

A: In a nutshell, an economy must distribute its resources and pick between several possible bundles of…

Q: Why is the right of private property an essential characteristic of a market system?

A: A market system consists of buyers and sellers who interacts in order to make economic decisions and…

Q: what is the major economic schools of thought?

A: A school of economic thought deal with economists who have a particular view or perspective…

Q: What is the difference between private and social costs?

A: There is a difference between private costs and social costs. This difference should be known to…

Q: To what extent should the government interven in the market? Write a long 500 word answer.

A: The government interference in the market is restricted by Keynes, according to him the government…

Q: How can clothing industry be economic sustainable?

A: The clothing industry can be made sustainable if the following points are kept in mind :

Q: How would you determine the value of your product, if the market is efficient?

A: In economics, a market is said to be an efficient market if the total surplus generated from…

Q: Why does government intervention become necessary in the situation of market failure?

A: Market failure is an economic situation wherein the goods and services in an economy cannot be…

Q: What are market failures? Discuss examples of market failures. What can government do to improve the…

A: According to the concept of economic efficiency, a distribution of inputs among commodities and of…

Q: What do you think is the most ideal and beneficial type of Market Structure? Why?

A: The market structure when there is fair competition between all the sellers or firms in the market…

Q: What would would be a more moral system of exchange and why?

A: The system of exchange in context of economic activities can  be moral if it is:- Universal:- It is…

Q: Q5. Provide your own example regarding each 4 types of market failures and explain why that is a…

A: Market failure is a situation when companies and businesses are failing to distribute goods and…

Q: what are the three institution of government that protect individuals right in a market economy,…

A: Market Economy Supply and demand, multiple economic forces, govern the creation of goods and…

Q: In planned economic systems, government agencies control both supply and price of the products.…

A: In planned economic systems, government agencies control both supply and price of the products. This…

Q: Help me understand the consequences of the market failure

A: Answer: Market failure appears when the attainable outcomes are not achieved, it is a situation…

Q: Consumer sovereignty is more likely to be observed in what type of economic system? A) Both A and B…

A: The theory of consumer sovereignty implies that the buyer knows what's best for himself or herself…