Question

Why does even a free market economy need some government intervention?(economics)

Answer 1

The government tries to combat market inequities through regulation, taxation, and subsidies. Governments may also intervene in markets to promote general economic fairness. ... Governments may sometimes intervene in markets to promote other goals, such as national unity and advancement.

Answer 2

To combat unfair market practices

Step-by-step explanation:

In a free market economy the prices of goods and services are been controlled the factors of demand and supply.and also customers and supplier have a role to play in determining the prices. in a free market economy the Government has very little control over it.

Government intervention is needed at times to curb unfair market practices that could be portrayed by the supplier/sellers in the open market for their selfish gains. in the open market the suppliers might hoard commodities in other to create artificial scarcity with the aim of driving prices higher than they should be . hence Government can common by imposing increased sanctions on such suppliers so such practice will be discouraged.