Which of the following would be an example of government intervention to correct a market failure caused by buyers having inadequate information about sellers?
A) Providing unemployment compensation insurance
B) Sponsoring legislation to reduce pollution
C) Licensing of medical doctors and surgeons
D) Requiring all car drivers to buy auto insurance

Question

Quizplus · Accepted Answer

Licensing of medical doctors and surgeons ensures that buyers (patients) have access to information about the qualifications and expertise of the seller (doctor or surgeon), thus correcting the market failure caused by inadequate information. This intervention helps to improve the quality of healthcare services and protect patients from harm.  The other options listed do not directly address the issue of inadequate information about sellers.

Which of the Following Would Be an Example of Government