Governments,not markets,have the best record of allocating investment resources into those projects with the highest expected rate of return.

Question

Quizplus · Accepted Answer

Markets have a better record of allocating investment resources into projects with the highest expected rate of return because they are based on the principles of supply and demand and competition, which drive efficiency and innovation. Governments, on the other hand, may have political motivations that affect their decision-making and allocation of resources. However, there may be certain market failures where government intervention can be helpful to correct for externalities or address public goods.

Governments,not Markets,have the Best Record of Allocating Investment Resources into Those