Answer to Question #154419 in Macroeconomics for mashiloane

Question

give three reason for government intervention in the economy

Answer 1

A market economy is not able to operate effectively without some government intervention. Government interventions are able to support such areas of the economy that create non-monetary benefits: science, culture, nature protection, and so on. Also, government interventions are essential during some unusual conditions: pandemic, ecological catastrophe, war, etc.