Is poverty a market failure or a negative externality


Complete the following with example :

How can a market still leave some people in a suboptimal economic situation? Is poverty a market failure or a negative externality? If poverty is a market failure, do you think this gives credence to the government's action to fight poverty?

Please support answer with sources.

Response should be submitted in Times New Roman 12pt font with 1" margins, typewritten in double-spaced format.

 

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