market failure

Market failure is a situation in which a given market does not efficiently organize production or allocate goods and services to consumers. Overcoming market failure is a significant challenge for the government, which is not easy to accomplish and may require intervention. In this Discussion, you will consider what the government can do to regulate market inefficiencies.

By Day 7

Submit a 300- to 500-word response that addresses the following:

  • Give one example of a market failure, such as air pollution, water pollution, illegal immigration, or child labor, that is an international problem.
  • Describe the role of the U.S. government in addressing this international market failure and explain why the U.S. cannot unilaterally solve the problem.
  • Explain how individual economic decisions affect this market failure and how economic principles can be applied to modify those individual decisions to help correct the market failure.

 

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