wants are unlimited while resources are scarce
productivity is higher in the public than in the private sector
free market may not work, or produce desirable results
opportunity cost of government expenditure is zero
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C. free market may not work, or produce desirable result
Government intervention in an economy means that the government becomes involved in the workings of the economy to influence the way it operates. This can be for many reasons, but one of the main reasons is that sometimes the free market (when individuals and businesses are free to make their own decisions about buying, selling, and producing goods and services) may not work efficiently or produce the desired results for everyone. In these cases, the government may step in to regulate certain aspects of the economy to ensure that everyone is better off.
Wants are unlimited, all resources are scarce: This is a basic principle of economics but doesn’t specifically justify government intervention. It just explains the fundamental problem of scarcity. Government intervention in an economy is often justified because free markets do not always lead to desirable or efficient outcomes.
Yes! The answer is correct because the problems of economists in the society is to solve the problems of scarcity in the economy where human wants are unlimited
