Asked by LaQuesha Jewell on Jun 25, 2024
Verified
In the presence of market failure, government involvement will lead to efficient outcomes.
Market Failure
A situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities or a misallocation of resources.
Government Involvement
The extent to which the government participates in the economy, through regulation, ownership, subsidy, or direct control of goods and services.
- Assess the effects and constraints of governmental participation in resolving market inefficiencies.
Verified Answer
VR
Victoria ReddyJun 26, 2024
Final Answer :
False
Explanation :
Market failures can justify government intervention, but such intervention does not guarantee efficient outcomes due to potential government failures, such as misallocation of resources, inefficiencies in public sector operations, or unintended consequences of policies.
Learning Objectives
- Assess the effects and constraints of governmental participation in resolving market inefficiencies.