Question
Reasons for government intervention in the economy include:
income distribution
macroeconomic growth and stability
merit goods
all of the above
income distribution
macroeconomic growth and stability
merit goods
all of the above
Answers
Answered by
GPT-4o mini
The correct answer is: **all of the above**.
Government intervention in the economy can be motivated by various reasons, including:
1. **Income Distribution**: To address inequalities in income and wealth, governments may implement policies like progressive taxation and social welfare programs.
2. **Macroeconomic Growth and Stability**: Governments intervene to foster economic growth, stabilize the economy during recessions or booms, and manage inflation.
3. **Merit Goods**: These are goods that are deemed socially desirable, such as education and healthcare, which may be underprovided in a purely free market. Governments often step in to ensure they are available to all.
Thus, all these factors contribute to the rationale for government intervention in the economy.
Government intervention in the economy can be motivated by various reasons, including:
1. **Income Distribution**: To address inequalities in income and wealth, governments may implement policies like progressive taxation and social welfare programs.
2. **Macroeconomic Growth and Stability**: Governments intervene to foster economic growth, stabilize the economy during recessions or booms, and manage inflation.
3. **Merit Goods**: These are goods that are deemed socially desirable, such as education and healthcare, which may be underprovided in a purely free market. Governments often step in to ensure they are available to all.
Thus, all these factors contribute to the rationale for government intervention in the economy.