Which of the following may be used in an attempt to correct market failure?
A)The market mechanism.
B)Laws and regulations.
C)Laissez faire price policies.
D)Government failure.

Question

Quizplus · Accepted Answer

Laws and regulations can be used to correct market failures by setting standards, imposing penalties, and providing incentives for individuals and companies to act in a socially responsible manner. This may include regulations to promote competition, protect the environment, or ensure consumer safety. The market mechanism alone may not be sufficient to correct all types of market failure, and laissez faire policies may exacerbate market failures. Government failure, or the potential for government to make policy mistakes or act in its own self-interest, is a risk to be avoided when implementing corrective policies.

Which of the Following May Be Used in an Attempt