An economist would be most likely to advocate for regulation under which of the following scenarios?

Question

An economist would be  most  likely to advocate for regulation under which of the following scenarios?

Quizplus · Accepted Answer

An economist would be most likely to advocate for regulation when scientific evidence suggests regulation is an appropriate solution. Economic analysis weighs the costs and benefits of various policies and measures their effects, so scientific evidence provides a sound basis for regulation that balances efficiency with the benefits to society. A political consensus or philosophical argument alone would not be sufficient for an economist to advocate for regulation since those factors do not provide the same level of empirical support for effective policy-making. While there are certainly debates among economists about the appropriate role and level of regulation, economists recognize that certain market failures or externalities may warrant government intervention.

An Economist Would Be Most Likely to Advocate for Regulation