Which of these is not a valid reason for government intervention into mutually beneficial exchange?
A)The market system might not function at all without government protecting certain rights
B)The market system produces an efficient outcome that the majority does not like
C)The government might be able to undertake some activities more efficiently than the market outcome.
D)The market allocation might be viewed as inequitable,so redistribution might be desired to achieve equity goals.

Question

Quizplus · Accepted Answer

Government intervention should not be based on the majority's subjective preference for a different outcome than what the market produces. The market outcome may be efficient even if not everyone likes it. The other options listed provide valid reasons for government intervention in certain cases.

Which of These Is Not a Valid Reason for Government