If government intervention fails to improve economic outcomes,the result is known as:
A) Government failure.
B) Market failure.
C) Mixed economy failure.
D) Laissez faire.

Question

Quizplus · Accepted Answer

Government failure occurs when government intervention in the economy leads to a worse outcome than if the government had not intervened at all. This could be due to inefficiencies, unintended consequences, or political factors. Market failure, on the other hand, refers to a situation where the market itself fails to allocate resources efficiently, leading to inefficiencies and/or inequities. Mixed economy failure and laissez faire do not accurately describe the situation where government intervention fails.

If Government Intervention Fails to Improve Economic Outcomes,the Result Is