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Examen
Econ Assignment #4 2023 with complete solution
Market failure occurs because 
the market system does not make individuals responsible for the social​ costs/benefits of their actions. 
 
 
 
A cost or benefit of an economic activity that has an impact on an​ individual's well-being, even though the individual was not directly involved in the​ activity, is known as​ a(n) 
externality. 
 
 
 
Other than correcting​ externalities, other economic functions of government include 
providing a legal​ system, allocating public​ goods, ...