When faced with a market failure,the government:
A)usually tries to redistribute the existing surplus more fairly.
B)always takes over the market.
C)often encourages the well-functioning firms to stay through protectionist policy.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

Market failures are typically addressed by government intervention to correct inefficiencies, not necessarily by redistributing surplus, taking over markets, or using protectionist policies.

When Faced with a Market Failure,the Government