Economists Andrei Shleifer and Robert Vishny argue that governments,like consumers and producers,are rational and self-interested; they care about staying in power and maintaining their bureaucratic empires (what the economists call the "grabbing hand")more than improving social welfare (the "helping hand").The "grabbing hand" theory of government provides an example of ________.

Question

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The "grabbing hand" theory of government highlights the tendency of governments to prioritize their own interests over social welfare, which can result in government failures. Hence, government failures provide the best example of this theory. Options (A) and (B) are not directly related to the "grabbing hand" theory, and (D) is a vague and incorrect option.

Economists Andrei Shleifer and Robert Vishny Argue That Governments,like Consumers