The existence of government intervention often suggests that:
A)markets may not be able to provide for efficient results all of the time.
B)individual actions have no side effects.
C)equilibrium will be achieved through this intervention.
D)markets can efficiently manage the allocation of goods.

Question

Quizplus · Accepted Answer

The existence of government intervention suggests that markets may not be able to provide for efficient results all of the time. If markets were capable of always achieving efficient outcomes, there would be no need for government intervention. Therefore, government intervention is often implemented as a way to correct market failures and improve economic outcomes.

The Existence of Government Intervention Often Suggests That