Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Efficient distribution of goods and services
B
Excess supply of certain goods
C
Perfect competition among firms
D
Optimal use of all available resources
Understanding the Answer
Let's break down why this is correct
Answer
In a market where resource allocation is failing, it means that goods and services are not being distributed efficiently or fairly. This can lead to some people having too much of a product while others have too little, creating a situation of scarcity for certain items. For example, if a town only produces a limited amount of bread but the demand is high, some people may struggle to get enough bread for their needs, while others may hoard it. This misallocation can cause frustration and inequality among the community, as not everyone has access to the resources they need. Therefore, addressing these failures is crucial for ensuring that resources are used wisely and everyone has a fair chance to obtain what they need.
Detailed Explanation
When resources are not used well, some goods can be made too much. Other options are incorrect because Some might think that a failure means goods are spread out well; People might believe that competition means everything is perfect.
Key Concepts
resource allocation
market failure.
Topic
Resource Allocation and Scarcity
Difficulty
medium level question
Cognitive Level
understand
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