A rationale for government involvement in a market economy is
A)markets sometimes fail to produce a fair distribution of economic well-being.
B)markets sometimes fail to produce an efficient allocation of resources.
C)property rights have to be enforced.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All three options listed (market failures in distribution, market failures in allocation of resources, and enforcement of property rights) provide valid reasons for government involvement in a market economy. Therefore, the correct answer is D, "All of the above are correct."

A Rationale for Government Involvement in a Market Economy Is