Asked by Yadhira Vicencio on Sep 23, 2024
Verified
Government intervention
A) can provide incentives to conduct business in an illegal black market
B) plays no role in generating wealth
C) is the best way to eliminate poverty
D) does not enforce property rights
Government Intervention
The active involvement of a government in the economic, social, or political matters of a country, typically to correct market failures or promote social welfare.
Black Market
An illegal trade of goods or services where transactions occur beyond governmental control or are not sanctioned by law.
Illegal
Activities or actions that are forbidden by law and subject to legal penalties.
- Delve into the impact of governmental regulation on market functionality, considering the roles of taxes, price management, and economic incentives.
- Recognize the misconceptions related to the zero-sum fallacy in economic transactions.
Verified Answer
TL
Taylor L Jentabout 9 hours ago
Final Answer :
A
Explanation :
Government intervention can sometimes create unintended consequences, such as providing incentives to conduct business in an illegal black market. This can happen through excessive regulation or taxation, making legal business operations less profitable or more difficult than illegal ones.
Learning Objectives
- Delve into the impact of governmental regulation on market functionality, considering the roles of taxes, price management, and economic incentives.
- Recognize the misconceptions related to the zero-sum fallacy in economic transactions.