We know government failure as the notion that ________ becomes the tool of ________ and makes the allocation of resources even less efficient than before, and this is described in public choice theory.
A) the public; the government
B) government; the rent seeker
C) government; barriers to entry
D) a natural monopoly; the government

Question

Quizplus · Accepted Answer

Government failure occurs when the government becomes the tool of rent seekers, individuals or organizations that attempt to obtain economic rent by manipulating the social or political environment in which economic activities occur, rather than by creating new wealth. Public choice theory describes this phenomenon, highlighting how it can lead to inefficient allocation of resources.

We Know Government Failure as the Notion That ________ Becomes