Role of Government
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Activity 3
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<ol>
<li>What causes market failures?
<ol type=A>
<li>Governments do not distribute resources efficiently in the market.
<li>Producers and consumers fail to agree on needs.
<li>Markets on their own do not distribute resources efficiently.
<li>Consumers do not signal their wants and needs to the producers.
</ol>
<li>Why are free riders a type of market failure?
</ol>