When markets fail, people request

Question

Quizplus · Accepted Answer

When markets fail, it is often because of market inefficiencies, such as externalities or monopolies, and lack of competition. In these cases, government intervention is necessary to correct market failures and promote public welfare. This could include measures like regulation, taxation, subsidies, or public provision of goods and services. Simply creating more or different markets may not address the underlying problems and could even exacerbate them. Advocating for free markets or laissez-faire practices in the face of market failures ignores the realities of imperfect markets and the need for government action.

When Markets Fail, People Request