Which of the following is not universally accepted as being a reason for legitimate government policy?
A) The provision of merit goods
B) The provision of public goods
C) The need to take account of externalities
D) Very high taxation rates on the richer members of society

Question

Quizplus · Accepted Answer

The first three options (A, B, C) are widely recognized reasons for government intervention in the economy, such as to correct market failures or provide goods that the market would under-provide. Option D, very high taxation rates on the richer members of society, is more contentious and not universally accepted as a legitimate reason for government policy, as opinions on taxation levels and redistribution vary significantly.

Which of the Following Is Not Universally Accepted as Being