Which of the following has occurred when government directives do not produce better economic outcomes?
A)Government failure.
B)Market failure.
C)Macroeconomic failure.
D)Scarcity.

Question

Quizplus · Accepted Answer

When government directives, such as regulations or subsidies, do not produce better economic outcomes or even have negative effects, it is considered government failure. This happens when there is an inefficient allocation of resources due to government intervention. Market failure, on the other hand, is when the free market fails to allocate resources efficiently. Macroeconomic failure refers to a broad failure in the entire economy, such as recession or inflation. Scarcity is a fundamental economic concept that refers to limited resources and unlimited wants.

Which of the Following Has Occurred When Government Directives Do