The government promotes economic efficiency by producing in areas where the market fails to optimally allocate resources.

Question

Quizplus · Accepted Answer

The government's role in promoting economic efficiency is to intervene in situations where the market fails to allocate resources efficiently. In these cases, the government can produce public goods, regulate monopolies, provide subsidies, or implement taxes to correct for market failures and promote economic efficiency.

The Government Promotes Economic Efficiency by Producing in Areas Where