Question

There is no reason to believe that ad hoc attempts to repair market failures, such as determining shadow prices for unpriced social goods, or exempting social goods from the market, or using the law to address social goods that are unattainable through individual choice, are socially inadequate.

A. True
B. False

Answer 1

Answer:

A. True

Explanation:

In order to address market failures it is essential to consider structural problems rather than using ad hoc solutions as was the case after 2008 financial crises. Quantitative easing was used by Federal reserve to stimulate growth in the economy.

Similarly in case of social good we need to consider the impact of products/services produced by companies that directly impacts nature like lakes,oceans. disposing of plastics in oceans .

Climate change is real and recent climate catastrophe are an evident example to learn from.