Urban studies is a multifaceted learning of metropolitan environments, including but not limited to their peripheral areas. The tools of sociology and economic theories, the hypothetical questions stimulate the search for the genesis, growth and influences of institutions. The relevance of urban studies lies in their direct application to what happens outside the study centers. The knowledge derived from these studies is crucial for influencing the social and economic dynamics of metropolitan areas. Why the market system cannot adequately determine the allocation of resources in the metropolitan region A market system that functions without artificial distortions allocates resources efficiently at all levels. However, where there is a distorted allocation, the market fails to allocate resources. The reason for this failure is that the benefits of the free market are not the same as those of the community in which the company operates. For example, the owners of a factory that emits smoke into the atmosphere earn money but the resulting air pollution affects people. Aggregate families and the state together, at various stages, spend large sums of money to treat smoking-induced ailments more than the company uses to produce goods and services. Another reason for failure is misinformation, which stimulates the use of deliberately mass-produced poor goods. This works against the better goods favored by consumers. This underproduction means that the market largely has a poor choice of valuable goods, but is full of substandard goods. This production of goods and services that consumers do not need is a poor positioning of resources, which could have satisfied the various demands of the market. The profit motive in free markets… at the heart of the paper… ion policy is against anticompetitive practices such as price fixing. Making employees work excess hours is an example of worker exploitation, as is paying wages below the specified minimum. Labor laws offer legal protection against these two vices. Some labor practices make a mockery of employment in some areas of the world where employers have included several clearly punitive clauses in employment contracts. These clauses ensure that employers deduct all days an employee is off duty when sick or gone to deal with personal and family problems. These seem extreme in developed countries. However, in developing countries these injustices are very common violations of employment law enshrined in the ILO Conventions on Labor Related Matters. Works Cited Gottdiener, Hutchison. The new urban sociology, Perseus Books Publishers. 2006., Print