Government policies are coercive, whereas markets are NOT.What does this imply?

Question

Quizplus · Accepted Answer

The statement implies that governments use coercion to enforce their policies, while markets rely on voluntary choices. This does not necessarily mean that government activity is less efficient than market activity (A) or that households cannot maximize utility if they consume any government goods and services (B). It also does not imply that self-interest and public interest are always in conflict (C). However, it does suggest that government intervention in markets should be limited to situations where private markets fail to provide certain goods and services, such as public goods or services with positive externalities.

Government Policies Are Coercive, Whereas Markets Are NOT