Government failure, when government actions lead to inefficiency, can result in either

Question

Quizplus · Accepted Answer

Government failure can lead to both overprovision and underprovision of goods and services. In some cases, the government may provide too much of a particular good or service, resulting in inefficiency and waste. On the other hand, the government may fail to provide enough of a good or service, leading to market failure and inefficiency in the allocation of resources. Therefore, both A and B are correct.

Government Failure, When Government Actions Lead to Inefficiency, Can Result