Question

question 9
market failure and government intervention. the situations in questions 7, 8, and 9 are all examples of market failure. choose the correct reason for this to be the case.
3.c. homeless people in the streets
○ agents are not rational
○ markets are not perfectly competitive
○ there are negative externalities present
● distribution is not fair and just
○ the economy is not stable and growing

Explanation:

Homelessness in this context is a market failure issue because even if markets function efficiently in terms of resource allocation, the resulting distribution of income and resources leaves people without housing, which is seen as an unfair and unjust outcome of the market system.

Answer:

Distribution is not fair and just