(Solved): Which of the following is the clearest example (according to the lessons of Adam Smith) of when gove ...

1. Which of the following is the clearest example (according to the lessons of Adam Smith) of when government should attempt to interfere, in some manner, with a market outcome?

A. When price gougers come into areas hit by hurricanes and charge high prices for generators.

B. When reckless snow skiers go to the hospital for treatment, only to have most of it paid for with health insurance because the government is more efficient at creating efficient market outcomes.

C. When people try to buy and/or sell pirated movies and music.

D. When businesses pay wages that are too low to support a family.

E. When people allow crab grass to be grown in their yards, destroying property values for their neighbors.