📚 Learning Guide
Government Intervention and Market Efficiency
easy

Government intervention is to market efficiency as a speed limit is to:

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Safe driving

B

Increased traffic accidents

C

Unrestricted driving

D

Higher fuel consumption

Understanding the Answer

Let's break down why this is correct

Answer

Government intervention in the market is like a speed limit on a road because both serve to create safety and order. Just as a speed limit helps prevent accidents and ensures that drivers travel at a safe pace, government intervention aims to correct market failures and protect consumers. For example, if a company pollutes the environment, the government might step in to impose regulations, similar to how a speed limit keeps cars from going too fast. Both measures can slow things down but ultimately help maintain a balanced and fair system. Therefore, while they may seem restrictive, they are designed to promote overall well-being and efficiency.

Detailed Explanation

Just like speed limits help keep drivers safe, government rules help keep markets fair. Other options are incorrect because Some might think limits cause more accidents, but they actually reduce them; The idea here is that without limits, driving is free.

Key Concepts

Government Intervention
Market Efficiency
Regulation Impact
Topic

Government Intervention and Market Efficiency

Difficulty

easy level question

Cognitive Level

understand

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