Why might government intervention occur in an economy
A. To stimulate technological advancement
B. To promote international trade agreements
C. To maintain preferences
D. To address markets failure
Government intervention may occur in an economy for a variety of reasons, including:
A. To stimulate technological advancement: Governments may intervene to invest in research and development, provide grants or incentives to companies for innovation, and promote the adoption of new technologies in order to drive economic growth and compete globally.
B. To promote international trade agreements: Governments may intervene to negotiate trade deals, remove trade barriers, and create partnerships with other countries to promote exports and boost the economy.
C. To maintain preferences: Governments may intervene to protect domestic industries, support specific sectors, or provide subsidies to certain companies to ensure they remain competitive and contribute to the economy.
D. To address market failure: Governments may intervene to regulate industries, enforce antitrust laws, set environmental standards, and provide public goods and services when the free market fails to allocate resources efficiently, protect consumers, or address externalities.
Overall, government intervention may be necessary to ensure the stability, growth, and sustainability of an economy.