The basic principles of economics suggest that
A)markets are seldom,if ever,a good way to organize economic activity.
B)government should become involved in markets when trade between countries is involved.
C)government should become involved in markets when those markets fail to produce efficient or fair outcomes.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The basic principles of economics suggest that markets are generally efficient and effective in organizing economic activity, but may not always produce efficient or fair outcomes. In those cases, government intervention may be necessary to correct market failures and ensure a more efficient and equitable distribution of resources. This could include measures such as regulation, taxation, subsidies, or public provision of goods and services. However, it is not necessary for government to be involved in all markets or in trade between countries, unless there is evidence of market failure or other externalities that require intervention.

The Basic Principles of Economics Suggest That