State three reasons for a potentially beneficial role of government intervention.
A. Creating barriers to entry to promote market efficiency.
B. Providing public goods.
C. Restraining trade so prices rise.
D. Correcting informational problems.
E. Generating a government failure to affect market pricing.
F. Offsetting the incentive effect provided by wages.
G. Correcting for negative or positive externalities.
Answer: A, B, F.
A. Creating barriers to entry to promote market efficiency.
B. Providing public goods.
F. Offsetting the incentive effect provided by wages.
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