Understanding market failures helps us make better economic choices. It shows us where resources aren't used very well. Here are the main types of market failures:

1. Externalities:

   • Negative: Pollution costs the U.S. about $1 trillion every year.
   • Positive: Education provides benefits worth $10 trillion over a person's lifetime.

2. Public Goods:

   • These are things everyone can use, and one person's use doesn't stop another from using them. For example, national defense costs around $700 billion each year, but it helps all citizens.

3. Information Asymmetry:

   • In healthcare, patients often don’t have enough information to make good choices. This can lead to costs going up by 20% because of unnecessary services.

By fixing these problems, leaders can improve people's well-being and make the economy work better.