The provision of goods by government is an example of intervention to address what issue?

The provision of goods by the government is primarily aimed at addressing market failure, particularly that which arises from externalities. Market failures occur when the allocation of goods and services by a free market is not efficient. Externalities, which can be either positive or negative, arise when the actions of individuals or firms have effects on third parties that are not reflected in market prices.

For instance, when a government steps in to provide public goods, such as education or healthcare, it is often because the market alone would fail to deliver these services effectively due to externalities. Public education can enhance societal knowledge and productivity, benefiting not only the individuals receiving the education but also the society at large. Similarly, healthcare can lead to a healthier population overall, contributing to a more productive workforce.

In contrast, the other options, while relevant to different economic contexts, do not directly capture the rationale behind government intervention through the provision of goods. Market competition focuses on the dynamics between firms in a marketplace, economic growth pertains to the overall increase in the production of goods and services within an economy, and inflation control relates to managing the price levels in the economy. These concepts, while important, do not specifically address the challenges posed by externalities that prompt government intervention in the supply of goods