Question

When markets don't achieve efficiency, then:
Choose one answer.

a. they must achieve equity.
b. government must be participating in the market.
c. government may intervene to improve society's welfare.
d. they should be closed.

Answer 1

Answer:

c. government may intervene to improve society's welfare

Explanation:

In order to address inefficiency, governments meddle in markets. Resources are completely assigned to those who need them to the extent they need in an ideally efficient market. Inefficiency may take various forms. Through governing, taxing and subsidizing the government tries to counter these disparities.