Which of the following is a case when the government should intervene in the economy?
A) when consumers cannot make up their minds what they want to purchase
B) when sellers make poor business decisions
C) when producers use the least-cost methods of production
D) when the market fails to provide goods efficiently

Question

Quizplus · Accepted Answer

When the market fails to provide goods efficiently, it can cause negative externalities such as pollution or exploitation of workers. In such cases, government intervention is necessary to correct market failures and ensure that goods and services are provided adequately and equitably.

Which of the Following Is a Case When the Government