In the absence of externalities,government actions are needed to ensure the efficiency of the market system.

Question

Quizplus · Accepted Answer

In the absence of externalities, there is no need for government actions to ensure the efficiency of the market system. The market can efficiently allocate resources and determine prices. However, externalities such as pollution or income inequality may require government intervention to correct market failures.

In the Absence of Externalities,government Actions Are Needed to Ensure