Economists generally agree that government intervention in the economy is appropriate
A)whenever there is a market failure.
B)whenever the costs of market failure are greater than the benefits of the existence of markets.
C)whenever the benefits of the correction of the market failure through intervention are greater than the costs of the intervention itself.
D)only when the market fails to provide a socially useful good.
E)whenever the costs of the intervention are greater than the value of the correction of the market failure.

Question

Quizplus · Accepted Answer

Economists generally agree that government intervention in the economy is appropriate when the benefits of the correction of the market failure through intervention are greater than the costs of the intervention itself. This means that government intervention should only occur when it is more efficient and effective for the government to intervene rather than leaving the market to correct itself. The government must weigh the benefits against the costs to determine whether intervention is appropriate.

Economists Generally Agree That Government Intervention in the Economy Is