A market failure refers to an economic situation where the resources within the economy are inefficiently distributed. When resources are inefficiently distributed, the market demand for goods and services is more than the supply or vice versa. Some examples of market failures include monopoly power, missing market, and incomplete market. Market failure mostly occurs in a free market where the economy is controlled by the private sectors, which mostly act on their self-interests.

List an example of market failure that has occurred in the U.S. in the last few years. Be specific.

An example of market failure is the 2008 financial crisis. During this market failure, the demand for loans was more than the supply. This leads to a market inefficiency, which led to the collapse of the financial market. The second example of market failure is the monopoly in the steel market. The U.S Steel has had monopoly power in controlling the production of steel in the United States. This has led to the failure of the U.S steel market.