When government failure is present,
A) market allocation will lead to an outcome consistent with idealized economic efficiency.
B) the political process will lead to an outcome consistent with idealized economic efficiency.
C) there is a conflict between what is best for individual decision-makers and getting the most value out of resources.
D) political corruption will be widespread because this is the primary factor underlying government failure.

Question

Quizplus · Accepted Answer

Government failure occurs when government intervention leads to inefficient outcomes, often due to conflicts between individual incentives and optimal resource allocation.

When Government Failure Is Present