One role government can play in addressing market failure is to
A) enforce the rules of exchange.
B) increase economic uncertainty.
C) promote imperfect competition.
D) facilitate decision making for private goods.

Question

Quizplus · Accepted Answer

Enforcing the rules of exchange, such as regulations on monopolies and anti-trust laws, can help prevent market failures like monopolies, oligopolies, and negative externalities. Increasing economic uncertainty, promoting imperfect competition, and facilitating decision making for private goods may worsen market failures.

One Role Government Can Play in Addressing Market Failure Is