Question

why does the government need to handle market failures? (1 point) the natural forces of a free market tend to over correct for market failures. market failures occur when goods or services are excludable. the natural forces of a free market do not tend to fix market failures due to individuals and producers making decisions based on their own self - interest. market failures indicate a scarcity of resources, so it must be managed.

Explanation:

In a free - market, individuals and producers act in their self - interest. This leads to market failures such as externalities, public goods issues, etc. The natural forces of the free market do not correct these failures on their own. The government steps in to address these inefficiencies.

Answer:

The natural forces of a free market do not tend to fix market failures due to individuals and producers making decisions based on their own self interest.