The idea of government failure includes all of the following except
A) the special-interest effect.
B) bureaucratic ineﬃciency.
C) pressure by special-interest groups.
D) extensive positive externalities from public and quasi-public goods.

Question

Quizplus · Accepted Answer

The idea of government failure includes the special-interest effect, bureaucratic inefficiency, and pressure by special-interest groups. Government failure refers to situations where government intervention in the market causes a more inefficient outcome than if the government had not intervened at all. Extensive positive externalities from public and quasi-public goods do not relate to government failure.

The Idea of Government Failure Includes All of the Following