Question

Market failure occurs because
a. the market system forces individuals to consider the social consequences of their actions.
b. the market system does not make individuals responsible for the private​ costs/benefits of their actions.
c. the market system forces individuals to consider the social and private consequences of their actions.
d. the market system does not make individuals responsible for the social​ costs/benefits of their actions.

Answer 1

The correct choice is "d. the market system does not make individuals responsible for the social​ costs/benefits of their actions".

In economics, market failure refers to a circumstance in which the designation of products and ventures isn't proficient, frequently prompting a net social welfare misfortune. Market failures can be seen as situations where people's quest for pure self-premium prompts comes about that are not effective – that can be enhanced from the societal perspective.