A Main Rationale for Government Intervention in Markets ________ and ________

question 49

Multiple Choice

A main rationale for government intervention in markets ________ and ________.

• A)is to reduce producer surplus; redistribute wealth
• B)concerns the creation of public goods; reduces free-riding
• C)is to correct market failures; increase surplus
• D)There is never an economic rationale for government intervention.

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Definitions:

Foreign Distribution Agreements

Contracts between companies for the distribution of goods or services in countries other than their own.

Merchandise

Goods that are bought and sold in commerce; typically refers to the items stocked and offered for sale by a retail or wholesale business.

Arbitration Clause

A provision in a contract requiring that disputes between the parties be resolved through arbitration rather than through the court system.

Philippine Law

Refers to the legal system in the Philippines which is primarily based on Spanish and American law, with influences from indigenous and other foreign legal systems.