Asituation in which the market does not distribute resources efficiently is considered to be a market failure the public sector a business cycle a negative externality

The correct answer is A.

A market failure occurs when there is an inefficient distribution of goods and services in a free market, and it usually leads to a welfare loss. Typically, such situations arise when individuals pursue their self-interest and there are no redistribution measures established by economic authorities to control pure market outcomes and make these more egalitarian.

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