A government failure results when
A)the government allows a market failure to occur.
B)the government establishes property rights.
C)the market economy does not provide good answers to the three questions.
D)government intervention is unable to correct a market failure.
E)the government intervenes in a market economy.

Question

Quizplus · Accepted Answer

A government failure occurs when government intervention is unable to correct a market failure. This can happen when the government's policies are ineffective, inefficient, or create unintended consequences that worsen the situation. It is important to note that government failures are not the same as market failures, which occur when the market fails to allocate resources efficiently.

A Government Failure Results When