Government intervention in the economy is appropriate whenever... a. The benefits of the correction of the market failure through intervention are greater than the costs of the intervention itself. b. The costs of market failure are greater than the benefits of the existence of markets. c. The market fails to provide a socially useful good. d. All of the other answers are correct. e. There are information asymmetries in maarkets.
Government intervention in the economy is appropriate whenever... a. The benefits of the correction of the market failure through intervention are greater than the costs of the intervention itself. b. The costs of market failure are greater than the benefits of the existence of markets. c. The market fails to provide a socially useful good. d. All of the other answers are correct. e. There are information asymmetries in maarkets.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Q86
Government intervention in the economy is appropriate whenever...
a.
The benefits of the correction of the market failure through intervention are greater than the costs of the intervention itself.
b.
The costs of market failure are greater than the benefits of the existence of markets.
c.
The market fails to provide a socially useful good.
d.
All of the other answers are correct.
e.
There are information asymmetries in maarkets.
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