Which of the following is not a valuable role of government in a free market society?
A)To reduce negative externalities.
B)To enhance rent - seeking activities.
C)To reduce market power.
D)To provide public goods.

Question

Quizplus · Accepted Answer

Rent-seeking activities involve seeking to gain economic rent (i.e. income or profit above what is necessary) without creating any benefits to society. Therefore, enhancing rent-seeking activities is not a valuable role of government in a free market society. The other choices (A, C, and D) are all important roles of government in the context of a free market, as they help to promote efficiency, fairness, and overall social welfare.

Which of the Following Is Not a Valuable Role of Government