Question

Select all of the following that are true. To an economist, a coercive government can be useful in order to: *Reallocate resources in order to improve efficiency.*Fight negative externalities.*Provide a low-risk economic environment for individuals and firms.

Answer 1

*Fight negative externalities.

*Provide a low-risk economic environment for individuals and firms.

Step-by-step explanation:

For an economist, a government must be coercive when it is necessary to regulate the behavior of economic agents. This may be necessary to curb negative externalities (which are the impact of an economic activity on society as a whole, for example pollution) or to maintain a healthy economic environment, for example through regulation to avoid price matching (cartels). .

Plus: For an economist, the best business allocation is through the free market, without government intervention, except to regulate the behavior of economic agents.