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Market failure

Market failure occurs when the free market does not allocate resources in a way that maximises social welfare.

Where this appears

The syllabus topics that use this term.

  • 1.1Economic Systems and the Role of Intervention
  • 2.3Market Equilibrium
  • 2.8Importance of International Cooperation
  • 2.8Merit and Demerit Goods
  • 2.8Socially Optimum Output (MSB = MSC)

Taught in What Is Economics? Scarcity, Choice, and Economic Models

All 809 terms
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