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AB
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B
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Which of the following methods of government intervention could help te
correct market failure?
A financial charge on doctors' appointments
State provision of education
Taxation of goods that generate external benefits
Subsidies to producers of goods that generate external costs


Sagot :

Final answer:

Government intervention through taxes and subsidies can address market failures and externalities to promote market efficiency.


Explanation:

Government intervention in correcting market failures can take various forms such as taxes and subsidies. For instance, taxation of goods that generate external benefits can help internalize costs, while subsidies to producers of goods that generate external costs can incentivize positive behavior. These interventions aim to move markets closer to efficiency by addressing externalities.


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