Based on Our Study of Market Failure and Government Failure

Multiple Choice

Based on our study of market failure and government failure, the main conclusion that one should arrive at is that

A) the market system is highly vulnerable to imperfections, and therefore the socialist system is a much better system to adopt.
B) the government has much imperfection and creates a lot of inefficiencies; therefore, it is best to adopt a pure market system.
C) it is best to always compare perfect markets against an idealized benevolent government that efficiently responds to the wants of society.
D) we must carefully compare the benefits of government intervention in our markets against the costs of such intervention.