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

Critics of government believe that the market system, with its emphasis on profits and competition, creates a strong motivation for companies to be internally efficient in order to maintain their competitiveness. In contrast, the public sector may not have the same incentives for efficiency since they are not driven by profit and may face less competition.

Critics of Government Contend That the Market System Creates Incentives