Which of the following factors reduces the need for government involvement in the marketplace?
A) The presence of externalities
B) The incentive to rent-seek
C) The need for public goods
D) Incomplete information

Question

Quizplus · Accepted Answer

Rent-seeking involves individuals or firms trying to gain economic benefits through manipulation or exploitation of the political environment, rather than through productive economic activity. Reducing rent-seeking behavior can decrease the need for government intervention as it allows the market to function more efficiently on its own.

Which of the Following Factors Reduces the Need for Government