The models of market failure suggest that government intervention may ________ resource allocation but that the result _______ .
A) improve; will clearly be achieved
B) improve; may not be achieved
C) diminish; cannot be achieved
D) diminish; may not be achieved

Question

Quizplus · Accepted Answer

The models of market failure suggest that government intervention may improve resource allocation, but there is no guarantee that the desired result will be achieved. This is because government intervention can often be inefficient or subject to political influence, leading to unintended consequences or failure to achieve the desired outcome. Therefore, while government intervention can improve resource allocation in some cases, there is a risk that it may not be achieved.

The Models of Market Failure Suggest That Government Intervention May