Government intervention can be productive and efficiency enhancing:
A)whenever the marginal social benefit is positive.
B)in markets for common resources.
C)because the government always acts with altruistic motives.
D)in all markets except those for public goods.

Question

Quizplus · Accepted Answer

Government intervention can be productive and efficiency enhancing in markets for common resources because it can help manage the resources efficiently, preventing overuse and ensuring sustainability, which is often a challenge in these markets due to the tragedy of the commons.

Government Intervention Can Be Productive and Efficiency Enhancing