condition that has none of the requirements for a competitive market: adequate competition, knowledge of prices and opportunities, mobility of resources, and competitive profits.

economics products that are paid for and consumer collectively, such as highways, national defense, police and fire protection

unintended side effects that are either benefit or harm a third party not involved in the activity that caused it

harm suffered by a third party because of the actions of others

calculation that compares the cost of an action to its benefits

Which statement is most accurate?

Which of the following can cause market failure?

A plant in a small town closes, leaving hundreds of people unemployed. There are jobs available at a similar plant in another state, but many of the unemployed workers are unwilling to move or cannot afford to move. An economist might use this example to _____________ .

What happens when some of the costs or benefits associated with production and consumption falls on someone other than the producers or consumers of a product?

What do externalities indicate?