Why do governments provide some goods and services in market economies?

a. Markets cannot operate without some government involvement.

b. Markets are always distorted by laissez-faire policies.

c. They provide politicians with better jobs.

d. All needed services cannot be adequately provided by businesses.

Question

Sheldon Alexander

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2 October, 13:29

Why do governments provide some goods and services in market economies?

a. Markets cannot operate without some government involvement.

b. Markets are always distorted by laissez-faire policies.

c. They provide politicians with better jobs.

d. All needed services cannot be adequately provided by businesses.

+1

Answers (1)

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Cindy Duffy · Answer 1

The main reason why governments provide some goods and services in market economies is that " a. Markets cannot operate without some government involvement," since otherwise consumers would eventually "lose out" as monopolies and the like form.