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Alana Lewis
on Dec 11, 2024

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Which of the following is a category of activity that results in government failure?

A) Externalities.
B) Special interest effect.
C) Public goods.
D) Monopoly.

Special Interest Effect

The phenomenon where policy decisions are disproportionately influenced by small, organized groups at the expense of the larger public's interest.

Government Failure

Situations where government intervention in the economy creates inefficiency, leading to a misallocation of resources.

Externalities

The side effects or consequences of commercial activities that affect other parties without being reflected in cost.

  • Explore the role of government action in resource allocation and the potential for counterproductive outcomes.
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nakhana diawaraDec 13, 2024
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