Government failure occurs when:
A) government fails to implement policy designed to correct a market failure.
B) government intervention in the market to improve a market failure succeeds.
C) government intervention in the market to correct a market failure makes things worse.
D) there is no need for government intervention into the market because there is no market failure.

Question

Quizplus · Accepted Answer

Government failure occurs when government intervention intended to correct a market failure actually exacerbates the problem or creates new issues, leading to a worse outcome than if no intervention had occurred.

Government Failure Occurs When