Asked by
Maryna Poslavska
on Dec 11, 2024
Verified
When government failure is present,
A) market allocation will lead to an outcome consistent with idealized economic efficiency.
B) the political process will lead to an outcome consistent with idealized economic efficiency.
C) there is a conflict between what is best for individual decision-makers and getting the most value out of resources.
D) political corruption will be widespread because this is the primary factor underlying government failure.
Government Failure
Occurs when government intervention in the economy causes more harm than good, leading to inefficiencies or unintended negative consequences.
Idealized Economic Efficiency
A theoretical state in which resources are allocated in the most effective way possible, maximizing productivity while minimizing waste and inefficiencies.
- Recognize and assess instances of governmental failure and their effects on the distribution of resources.
Verified Answer
AT
Learning Objectives
- Recognize and assess instances of governmental failure and their effects on the distribution of resources.