A rationale for government involvement in a market economy is a. markets sometimes fail to produce a fair distribution of economic well-being. b. markets sometimes fail to produce an efficient allocation of resources. c. property rights have to be enforced. d. All of the above are correct.

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Royce Brandt

30 October, 18:10

A rationale for government involvement in a market economy is a. markets sometimes fail to produce a fair distribution of economic well-being. b. markets sometimes fail to produce an efficient allocation of resources. c. property rights have to be enforced. d. All of the above are correct.

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Roderick Riddle · Answer 1

d. All of the above are correct.

Explanation:

One way of government involvement in a market economy is through Central planning; this way, the government guides economic activity. This can occur to correct a "market failure" which by definition, is inability of a market to allocate resources efficiently. Other reasons for government involvement are; to improve economic performance and to achieve a more equitable distribution of income and wealth.