Which of the following occurs if government intervention forces the economy inside the production possibilities curve?

Question

Quizplus · Accepted Answer

If government intervention forces the economy inside the production possibilities curve, it is a result of government failure. This means that the government's intervention has led to an inefficient allocation of resources, which is below the potential maximum output that could be achieved if the market was left to regulate itself.

Which of the Following Occurs If Government Intervention Forces the Economy