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

Government failure occurs when government directives or policies do not achieve their intended goal and may even result in a worse outcome than if no government intervention had occurred. This can happen for various reasons, such as inadequate information or understanding of the market, political pressure, corruption, or excessive regulation. Market failure refers to a situation where the market fails to allocate resources efficiently due to externalities, public goods, asymmetric information, or monopolies. Macroeconomic failure is a more general term that can refer to various macroeconomic problems, such as inflation, recession, or high unemployment. Scarcity is a fundamental concept in economics that refers to the limited availability of resources relative to unlimited wants and needs.

Which of the Following Has Occurred When Government Directives Do