Critics of government contend that the market system creates incentives and pressures for internal efficiency that are absent in the public sector.

Question

Quizplus · Accepted Answer

Market systems, through competition and profit motives, naturally incentivize businesses to improve efficiency and reduce costs to stay competitive, whereas the public sector, lacking these market pressures, may not face the same urgency or mechanisms for efficiency.

Critics of Government Contend That the Market System Creates Incentives