As a function of government in a modern market economy, how might a government respond to a market failure?
a.) a government might allow businesses to act in their own self-interest
b.) a government might intervene in the market to reestablish efficiency.
c.) a government might persuade consumers to reduce demand.
d.) a government might discourage entrepreneurship.

The answer is:

B.) A government might intervene in the market to reestablish efficiency.

Explanation:

One good example is the recent financial crisis in the US and world markets due to the bankruptcy of private banks, the mortgage crisis of 2008.  The US government was forced to rescue troubled institutions and apply corrective fiscal and macroeconomic measures.  So did other governments.

i am not in high school so i don’t know

for many centuries there were important factors which the economies of the muslim empires developed increasingly. they applied economic procedures in production, investment, finance, taxation and property. they used to tax certain goods (for example: harvest), they charged interest on money lent, they signed contracts with merchants; they relied on a common currency, and they used checks as well as promissory notes. with the money collected by means of taxation, the government provided the needy with an income. in addition, trading networks covered huge distances, so far regions started to have contact and exchange goods. this trade network covered areas of asia, africa and europe.