Chapter 16, Problem 10AA

To determine

To choose: The term that best completes the given sentence.

Answer to Problem 10AA

The term that best completes the given sentence is intervene.

Explanation of Solution

Government interference involves strengthening regulatory measures to influence or intervene with decisions taken by individuals, groups or organizations on economic and social issues for increase in production efficiency.

Political interference is any activity performed by the government or public body that affects the business system with the direct aim of having an effect on the economy, beyond pure contract control and public goods provision.

The key reasons for government policy interference are: Correcting business failures. Achieving a more equal distribution of wealth and profits. To boost economic efficiency.

So, the correct answer is intervene.

Economics Concept Introduction

Introduction: Economic activity is an operation in which people create, produce, buy or sell goods or services to meet everyday life needs. Any practice involving the manufacture, distribution or use of goods or services.