Governments May Successfully Intervene in Competitive Markets in Order to Achieve

question 147

Multiple Choice

Governments may successfully intervene in competitive markets in order to achieve economic efficiency:

• A) at no time; competitive markets are always efficient without government intervention.
• B) to increase the incidence of positive externalities.
• C) in cases of positive externalities only.
• D) in cases of negative externalities only.
• E) in cases of both positive and negative externalities.