The result of government intervention in the market is that
A)Society is always better off.
B)The production possibilities curve always shifts outward.
C)Society could be made better or worse off.
D)Society is always worse off.

Question

Quizplus · Accepted Answer

Government intervention in the market can have varying effects on society, depending on the specific policies implemented and the circumstances of the market. While some interventions may improve overall welfare, others may hinder efficiency and harm consumer or producer surplus. Thus, it is incorrect to claim that society is always better or worse off due to government intervention. The production possibilities curve may shift outward if government intervention leads to innovation and technological progress, but this is not always the case.

The Result of Government Intervention in the Market Is That