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Formative Assessment

Activity 3: Formative Assessment

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  1. What causes market failures?
    1. Governments do not distribute resources efficiently in the market.
    2. Producers and consumers do not agree on needs.
    3. Markets on their own do not distribute resources efficiently.
    4. Consumers do not signal their wants and needs to the producers.
  2. Why are free riders a type of market failure?

 Score Guide