Government failure is present whenA) the government engages in an activity such as the setting of prices that interferes with competitive markets.B) the incentives confronted by political participants encourage counterproductive use of resources.C) externalities create perverse incentives that undermine the efficient use of resources.D) unethical and corrupt actions are undertaken by some political officials.

Question

Government failure is present whenA)  the government engages in an activity such as the setting of prices that interferes with competitive markets.B)  the incentives confronted by political participants encourage counterproductive use of resources.C)  externalities create perverse incentives that undermine the efficient use of resources.D)  unethical and corrupt actions are undertaken by some political officials.

Samantha Heredia · Accepted Answer

Final Answer : B, Explanation :  Government failure occurs when the incentives faced by political participants lead to inefficient or counterproductive use of resources, often due to misaligned incentives or bureaucratic inefficiencies.

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