In order for government intervention in a situation of market failure to result in improved resource allocation, the government:
A) needs the relevant information.
B) must have the proper goals.
C) may have to resist serious lobbying efforts.
D) All of the above are true.

Question

Quizplus · Accepted Answer

For government intervention to improve resource allocation in a situation of market failure, all the options mentioned need to be fulfilled. The government needs relevant information to make informed decisions, must have the proper goals to achieve an efficient allocation of resources, and may have to resist serious lobbying efforts from interest groups that could undermine the effectiveness of the intervention.

In Order for Government Intervention in a Situation of Market