Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To enhance market efficiency
B
To increase profit for businesses
C
To eliminate competition
D
To reduce consumer choice
Understanding the Answer
Let's break down why this is correct
Answer
The primary goal of government intervention in a market economy is to promote fairness and efficiency. Sometimes, markets can fail to provide goods and services that are essential for society, like healthcare or education, leading to inequality or poor outcomes. By stepping in, the government can help ensure that everyone has access to these important resources. For example, if a company is polluting the environment, the government can create regulations to limit this pollution, which helps protect public health and the environment. Ultimately, government intervention aims to balance the needs of the economy with the welfare of its citizens.
Detailed Explanation
The main aim of government action is to make markets work better. Other options are incorrect because Some think the government helps businesses make more money; It's a common belief that the government wants to stop competition.
Key Concepts
Market efficiency
Topic
Government Intervention and Market Efficiency
Difficulty
easy level question
Cognitive Level
understand
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