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Government Intervention to Correct Market Failures May Face Special Problems

Question 90

Multiple Choice

Government intervention to correct market failures may face special problems in a democracy because democratic decision making


A) can reallocate resources to compensate the economic losers from policy changes.
B) may fail to take into account the intensity of voter's preferences.
C) allows each person the same opportunity to vote.
D) can be relied on to make consistent choices.
E) can tend to underrepresent special interests.

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