One effect of market intervention is resource misallocation.

Name: One effect of market intervention is resource misallocation.
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Question

Quizplus · Accepted Answer

Market intervention can lead to the misallocation of resources because it can disrupt the natural price mechanism that helps to allocate resources efficiently. When the government intervenes in the market, it can lead to price distortions and inefficient outcomes, which can result in resources being misallocated.

One Effect of Market Intervention Is Resource Misallocation