When the government alters normal market activity, this is known as:

Question

Quizplus · Accepted Answer

When the government intervenes in normal market activity, it is known as intervention. This can involve government policies, regulations, subsidies, or taxes that are designed to influence market outcomes. Market failure (option C) refers to situations where the market does not allocate resources efficiently, while innovation (option A) refers to the creation of new ideas, products, or technologies that can disrupt markets. Unexpected outcomes (option D) can occur in any situation, but it is not specific to government intervention in markets.

When the Government Alters Normal Market Activity, This Is Known