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The justification for government intervention is best described by
A The need to prevent recession and inflation in the economy
B The need to modify the outcomes of private market actions
C The need to bring in justice in distribution of income and wealth
D All the above?
A The need to prevent recession and inflation in the economy
B The need to modify the outcomes of private market actions
C The need to bring in justice in distribution of income and wealth
D All the above?
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The justification for government intervention is best described byA Th...
The Justification for Government Intervention
Government intervention in the economy is often justified for several critical reasons, which can be summarized as follows:
A. Preventing Recession and Inflation
- Governments have a responsibility to maintain economic stability.
- Interventions can include monetary policy adjustments, fiscal stimulus, and regulation of markets to prevent excessive inflation or severe recessions.
- By intervening, governments can stabilize prices and promote sustainable growth.
B. Modifying Outcomes of Private Market Actions
- The free market can lead to outcomes that are socially or economically undesirable, such as monopolies or market failures.
- Government intervention helps correct these inefficiencies through regulations and policies.
- This can promote competition, protect consumers, and ensure resources are allocated more fairly.
C. Ensuring Justice in Distribution of Income and Wealth
- Economic disparities can lead to social unrest and undermine democracy.
- Government policies, such as progressive taxation and social welfare programs, aim to redistribute income and improve equity.
- Ensuring a more equitable distribution of wealth can foster social cohesion and stability.
D. Conclusion: All the Above
- Each of these reasons highlights a fundamental role of government in the economy.
- Effective intervention can mitigate economic fluctuations, correct market failures, and promote social justice.
- Therefore, the justification for government intervention encompasses the need to prevent recession and inflation, modify market outcomes, and ensure equitable distribution of resources.
In summary, government intervention is essential for a balanced and fair economic system that promotes stability, efficiency, and equity.
Government intervention in the economy is often justified for several critical reasons, which can be summarized as follows:
A. Preventing Recession and Inflation
- Governments have a responsibility to maintain economic stability.
- Interventions can include monetary policy adjustments, fiscal stimulus, and regulation of markets to prevent excessive inflation or severe recessions.
- By intervening, governments can stabilize prices and promote sustainable growth.
B. Modifying Outcomes of Private Market Actions
- The free market can lead to outcomes that are socially or economically undesirable, such as monopolies or market failures.
- Government intervention helps correct these inefficiencies through regulations and policies.
- This can promote competition, protect consumers, and ensure resources are allocated more fairly.
C. Ensuring Justice in Distribution of Income and Wealth
- Economic disparities can lead to social unrest and undermine democracy.
- Government policies, such as progressive taxation and social welfare programs, aim to redistribute income and improve equity.
- Ensuring a more equitable distribution of wealth can foster social cohesion and stability.
D. Conclusion: All the Above
- Each of these reasons highlights a fundamental role of government in the economy.
- Effective intervention can mitigate economic fluctuations, correct market failures, and promote social justice.
- Therefore, the justification for government intervention encompasses the need to prevent recession and inflation, modify market outcomes, and ensure equitable distribution of resources.
In summary, government intervention is essential for a balanced and fair economic system that promotes stability, efficiency, and equity.
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The justification for government intervention is best described byA The need to prevent recession and inflation in the economyB The need to modify the outcomes of private market actionsC The need to bring in justice in distribution of income and wealthD All the above?
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The justification for government intervention is best described byA The need to prevent recession and inflation in the economyB The need to modify the outcomes of private market actionsC The need to bring in justice in distribution of income and wealthD All the above? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The justification for government intervention is best described byA The need to prevent recession and inflation in the economyB The need to modify the outcomes of private market actionsC The need to bring in justice in distribution of income and wealthD All the above? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The justification for government intervention is best described byA The need to prevent recession and inflation in the economyB The need to modify the outcomes of private market actionsC The need to bring in justice in distribution of income and wealthD All the above?.
The justification for government intervention is best described byA The need to prevent recession and inflation in the economyB The need to modify the outcomes of private market actionsC The need to bring in justice in distribution of income and wealthD All the above? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The justification for government intervention is best described byA The need to prevent recession and inflation in the economyB The need to modify the outcomes of private market actionsC The need to bring in justice in distribution of income and wealthD All the above? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The justification for government intervention is best described byA The need to prevent recession and inflation in the economyB The need to modify the outcomes of private market actionsC The need to bring in justice in distribution of income and wealthD All the above?.
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