Allocative efficiency is to optimal resource allocation as government intervention is to what?

Allocative efficiency means that resources are distributed in a way that maximizes the overall benefit to society. In this context, government intervention is often used to correct market failures, which can occur when resources are not allocated efficiently on their own. For example, if a factory pollutes a river, the costs of pollution are not reflected in the price of its products. The government might step in to impose regulations or taxes, helping to ensure that the factory considers these costs. This intervention aims to realign the market, leading to better resource allocation and more overall welfare.