A rationale for intervention is a reason why ______________,guided only by markets and private institutions,might make ____________ choices.This means that,compared to some societal ideal,they choose to __________________ of some activity.

Question

Quizplus · Accepted Answer

Private actors, guided only by markets and private institutions, might make socially suboptimal choices. This means that, compared to some societal ideal, they choose to do either too little or too much of some activity. Therefore, a rationale for intervention is a reason why private actors might not achieve socially optimal outcomes, and why external intervention may be necessary to correct market failures. Public actors may also make socially suboptimal choices, but the question specifically asks about private actors.

A Rationale for Intervention Is a Reason Why ______________,Guided Only