Asked by Janae Omusi on May 15, 2024

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Why is government intervention into economic systems needed? 

A)  to ensure economic growth 
B)  to improve market success 
C)  to promote new economic ventures 
D)  to promote economic stability

Government Intervention

Actions taken by a government to influence or directly manage an economy or specific industries, often to correct market failures or promote social welfare.

Economic Systems

The structured and organized ways societies allocate resources, produce goods and services, and distribute wealth among their populations.

Economic Stability

A state of steady financial conditions characterized by low inflation, steady growth, and low unemployment rates.

  • Recognize the role and impact of government intervention in economic systems.
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SZ
Sasha ZanjaniMay 19, 2024
Final Answer :
D
Explanation :
Government intervention is needed to promote economic stability. This can be achieved through various means such as regulating the supply of money, controlling inflation, stabilizing the stock market, and preventing market failures. Without government intervention, there is a risk of economic instability, which can lead to recessions or depressions. Other options listed, such as promoting economic growth or market success, may also be goals of government intervention, but ultimately they are driven by the overarching goal of promoting stability in the economy.