Critics of government contend that the market system creates incentives and pressures for internal efficiency which are absent in the public sector.

Question

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Critics believe that the market system creates competition among firms, which in turn leads to efficiency as businesses seek to lower costs and provide better products or services to consumers to increase market share. This pressure for efficiency is often absent in the public sector where profit is not the main objective, and there may be less competition and incentive to innovate.

Critics of Government Contend That the Market System Creates Incentives