In a situation where a market failure occurs,
A) Any government intervention will improve on the market outcome
B) There is nothing that the government can do to improve on the market outcome
C) Government intervention might improve on the market outcome
D) It will always be preferable to have the government intervene in the market

Question

Quizplus · Accepted Answer

In a situation where a market failure occurs, government intervention might improve on the market outcome. However, it is important to consider the potential unintended consequences of government intervention and ensure that the policies implemented effectively address the market failure. Therefore, it is not always preferable to have the government intervene in the market, but it is a potential option.

In a Situation Where a Market Failure Occurs