Super quick economics question about economic welfare/government intervention

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creativebuzz
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#1
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Okay so the answer is A but I thought it was C! What I want to know is:

why the is the answer a?
Why isn't the answer c?

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gozzabomb
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a) well it really does depend on the type of intervention and the extent of it: the type of intervention might not be right, and even if it is right, the measures may not have enough of an impact to promote economic welfare. Thus not all government intervention brings economic welfare.

c) there are arguments whether fiscal policies (i.e taxes and subsidies) are the best, however this is very much open to debate, some economists argue that monetary policy is equally or even more useful, supply side is another one
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creativebuzz
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(Original post by gozzabomb)
a) well it really does depend on the type of intervention and the extent of it: the type of intervention might not be right, and even if it is right, the measures may not have enough of an impact to promote economic welfare. Thus not all government intervention brings economic welfare.

c) there are arguments whether fiscal policies (i.e taxes and subsidies) are the best, however this is very much open to debate, some economists argue that monetary policy is equally or even more useful, supply side is another one
Thank you! But that still doesn't explain why a is the correct answer and c isn't..
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gozzabomb
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well you see, that if government intervention isn't always successful, then statement a is correct

c- well if there is an open ended argument to whether taxes and subsidies is the best way to control an economy, then statement c cannot be correct

sorry for the confusion
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creativebuzz
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(Original post by Ifailedumad)
What? no thank you? ^^^
Ive only just seen it but thank you very much! I really appreciated it and that was very well explained (positive rating given for thanks)
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