In the case of "public goods," it is practically impossible to charge people for the benefits they get from the "public good," and that creates a problem. Since the beneficiaries of the public good do not pay for the benefits they get, a profit-oriented market economy will not supply the public good, and that is inefficient. That point can be generalized somewhat. In general, when there are goods, services, and resources that people can get without paying for them at a market equilibrium price, inefficiency will be the result.
The term for this in economics is "externality."
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