Government intervention in the marketplace for the purpose of influencing prices should be done whenever the opportunity cost of such actions falls to zero.

Question

Quizplus · Accepted Answer

Government intervention in the marketplace to influence prices can lead to unintended consequences, such as market distortions or inefficiencies, regardless of the opportunity cost. Decisions on intervention should consider broader economic impacts, not just the opportunity cost.

Government Intervention in the Marketplace for the Purpose of Influencing