Market failure occurs when resources are misallocated.

What has happened to resource prices in the twentieth century and what do they reveal about resource scarcity?

Critics argue that society is depleting its energy resources far too quickly. The most likely explanation for this behavior is that

A. firms try to avoid making irreversible decisions about resource depletion. B. investors expect interest rates to fall continuously in the future. C. individuals tend to value their own well-being more highly than the well-being of future generations. D. people do not have what Pigou called a “defective telescopic faculty.”