State three reasons for a potentially beneficial role of government intervention

Question

State three reasons for a potentially beneficial role of government intervention. Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Generating a government failure to affect market pricing. Creating barriers to entry to promote market efficiency. Correcting for negative or positive externalities. Providing public goods. Offsetting the incentive effect provided by wages. Restraining trade so prices rise. Correcting informational problems.

Explanation / Answer

The following three reasons for a potentially beneficial role of government intervention.

1. Correcting informational problems
2. Providing public goods
3. Correcting negative/positive externalities

The government intervention is needed in these cases because the private players in the market cannot peform this function effeciently and it is the resposnsibility of the government.

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