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

Question

Quizplus · Accepted Answer

Market failure occurs when the market is not able to efficiently allocate resources or produce goods and services that are socially desirable. Laws and regulations can be used to correct market failure by setting standards, imposing taxes or subsidies, or establishing property rights. This can help ensure that the market operates in a way that benefits society as a whole. The other options listed (A, C, and D) are less likely to correct market failure. The market mechanism may not always be able to correct market failure on its own, laissez faire policies may exacerbate market failures, and government failure would not be a solution to market failure.

Which of the Following Can Be Used to Correct Market