The efficiency function of government is motivated primarily by a concern that the what and how questions are being incorrectly answered by the marketplace.

Question

Quizplus · Accepted Answer

The efficiency function of government is primarily concerned with correcting market failures, where the market fails to allocate resources efficiently due to externalities, public goods or natural monopolies. This implies that the government is motivated by a concern that the what and how questions are not being correctly answered by the marketplace. Therefore, the statement is true.

The Efficiency Function of Government Is Motivated Primarily by a Concern