Which of the following best describes the impact of government intervention on market efficiency?

Government intervention can have a significant impact on market efficiency, often aiming to correct market failures. When the government steps in, it can help ensure that resources are used more effectively, especially in situations where the market does not provide necessary goods or services, like healthcare or education. For example, if a government sets regulations to limit pollution, it can lead to a cleaner environment, which benefits everyone, even if it might increase costs for some businesses. However, too much intervention can also lead to inefficiencies, like when subsidies distort prices and encourage overproduction of certain goods. Overall, the goal of government policies is to balance the need for regulation with the benefits of a free market to enhance overall welfare.