Question

The basic principles of economics suggest that_________.

a. markets are seldom, if ever, a good way to organize economic activity.
b. government should become involved in markets when trade between countries is involved.
c. government should become involved in markets when those markets fail to produce efficient or fair outcomes.
d. All of the above are correct.

Answer 1

Answer is option d, i.e. All of the above are correct.

Step-by-step explanation:

All the given statements are correct.

Markets are considered to be the best way to organize economic activity, and this can be done by studying the market trends and various demands of the customers. This would help in assessing the estimation of supply that any organization would like to deliver to its respective customers. Similarly, the intervention of government and legal aspects are also important in maintaining both, the trade between the companies of different countries, and also if any organization fails to produce and deliver the required result.