In cost-benefit analysis,the government should intervene in environmental affairs as long as

Question

Quizplus · Accepted Answer

In cost-benefit analysis, the government should only intervene in environmental affairs if the improvement in the environment exceeds the costs. This means that if the benefits of government intervention outweigh the costs, then it is justifiable for the government to correct market failures. It is important for the government to consider the cost of intervention and ensure that the benefits to society outweigh the costs. Option A is incorrect because the government may incur costs when correcting market failures. Option B suggests that the government should only intervene if the value of government failure exceeds the value of market failure, which is not the most optimal approach. Option D is also incorrect because government failure should not be overlooked, and the costs of intervention should always be considered.

In Cost-Benefit Analysis,the Government Should Intervene in Environmental Affairs as Long