Efficient government intervention requires that ________.
A) the costs of government enforcement be zero
B) the marginal benefits of intervention be equal to the marginal costs of intervention
C) intervention should continue until all negative externalities have been eliminated
D) there be no productivity losses in the private sector as a result of government intervention

Question

Quizplus · Accepted Answer

Efficient government intervention occurs when the marginal benefits of intervention are equal to the marginal costs of intervention. This ensures that the intervention is achieving maximum possible benefits at minimum possible cost. The other choices are incorrect as they oversimplify the complexities of government intervention and do not encompass the concept of efficiency.

Efficient Government Intervention Requires That ________