Government failure occurs when government intervention fails to improve economic outcomes or makes them worse.
In such a case,the market outcome would be preferred to government intervention.

Question

Quizplus · Accepted Answer

Government failure occurs when government intervention in the economy leads to inefficient outcomes, which are worse than the outcomes that could have been achieved through the free market. In such cases, it is better to rely on market forces than on ineffective government intervention.

Government Failure Occurs When Government Intervention Fails to Improve Economic