Which of the following government policies ensures market efficiency?

Question

Quizplus · Accepted Answer

None of the listed policies ensure market efficiency. Subsidies and taxes can be used to encourage or discourage certain behaviors, but they do not necessarily increase market efficiency. Price and quantity regulations can distort the market and prevent prices from accurately reflecting supply and demand. Market efficiency is typically achieved when prices accurately reflect the true costs and benefits of goods and services, and buyers and sellers are free to make transactions based on their own self-interest.

Which of the Following Government Policies Ensures Market Efficiency