How does government intervention typically affect economic welfare in a market economy?

Government intervention in a market economy can affect economic welfare by trying to improve the overall well-being of society. For example, when the government sets regulations on pollution, it may raise costs for businesses, but it also helps protect the environment and public health. This means that while some companies might earn less profit, the community benefits from cleaner air and water, leading to a healthier population. However, if the government intervenes too much, it can create inefficiencies, like higher prices or reduced choices for consumers. So, the key is to find a balance where the government helps improve welfare without harming the market's ability to function effectively.