Public goods are examples of market failure because the ______ _____ cannot distribute the ______.

### Free Market Efficiency Side Effects

## Step1: Identify the Concept of Public Goods### Public goods are non-excludable and non-rivalrous, meaning they are available to everyone and one person's use does not reduce availability to others.## Step2: Understand Market Failure### Market failure occurs when the market does not allocate resources efficiently, leading to overproduction or underproduction of goods and services.## Step3: Connect Public Goods to Market Failure### Since public goods are non-excludable and non-rivalrous, the free market often fails to provide them efficiently due to the lack of incentives for private producers.## Step4: Identify the Missing Elements### The free market efficiency side effects refer to the inability of the market to distribute public goods efficiently.