To say that government intervenes in the economy to promote efficiency is to say that government is attempting to: a) create a more fair distribution of income, b) change the way in which the economic pie is divided, c) enlarge the economic pie, d) All of the above are correct

Business Dec 27, 2020

To say that government intervenes in the economy to promote efficiency is to say that government is attempting to:

a) create a more fair distribution of income,

b) change the way in which the economic pie is divided,

c) enlarge the economic pie,

d) All of the above are correct.

Expert Solution

Answer: C

By efficiency we mean to grow the size of the economy (total amount of income or production). By equality we mean to flatten out the income distribution. Thus, by saving the government wants to promote efficiency it wants to make the economy (economic pie) bigger.

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