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Governments may intervene in a market economy in order to

a. protect property rights.

b. correct a market failure due to externalities.

c. achieve a more equal distribution of income.

d. All of the above.

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Insha Fatima
Insha FatimaLv10
13 Nov 2020

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Related questions

1. Adam Smith's invisible hands refers to:

A. The subtle and often hidden methods that businesses use to profit at consumers' expense.

B. The ability of free markets to reach desirable outcomes, despite the self-interest of market participants.

C. The ability of government regulation to benefit consumers, even if the consumers are unaware of the regulations.

D. The way in which producers or consumers in unregulated markets impose costs on innocent bystanders.

 

2. Governments may intervene in a market economy in order to:

A. Protect property rights.

B. Correct a market failure due to externalities.

C. Schieve a more equal distribution of income.

D. All of the above.

 

3. If a nation has high and persistent inflation, the most likely explanation is:

A. The central bank creating excessive amounts of money.

B. Unions bargaining for excessively high wages.

C. The government imposing excessive levels of taxation.

D. Firms using their monopoly power to enforce excessive price hikes.

2.one reason some oppose free trade and the reduction of trade barriers in protectionism, What does old-fashioned protectionism seek to protect? Protectionism traditionally seeks to use trade barriers to protect

A. foreign cultures

B. mature industries

C. domestic jobs

D, us consumers

E. child labot

3. How do property rights affect exterrnalities and market failure?

A, Externalities and market failure will not occur when property rights are incomplete

B, Externalities will be positive and market failure will not occur when property rights are divided equally among market participants

C. Externalities will be positive and market failure will not occur when property rightsare enforced.

D. Externalities and market failure will result from producers having all the property rights.

E.Externalities and market failure will result from the difficulty of enforcing property rights

The term market failure refers to a market that fails to allocate resources efficiently. A market failure cannot be caused by

a. lack of property rights

b. trade-off

c. market power

d. externalities

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