Government failureA) leads to a more efficient allocation of resources.B) leads to a less efficient allocation of resources.C) occurs because households or firms do not act in their own self‐interest.D) occurs because government officials do not act in their own self‐interest.

Question

Government failureA)  leads to a more efficient allocation of resources.B)  leads to a less efficient allocation of resources.C)  occurs because households or firms do not act in their own self‐interest.D)  occurs because government officials do not act in their own self‐interest.

Prativa Acharya · Accepted Answer

Final Answer : B, Explanation :  Government failure leads to a less efficient allocation of resources, often due to mismanagement, corruption, or inefficiencies in policy implementation, which can distort markets and hinder economic performance.

Government failure

A) leads to a more efficient allocation of resources.
B) leads to a less efficient allocation of resources.
C) occurs because households or firms do not act in their own self‐interest.
D) occurs because government officials do not act in their own self‐interest.

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