Government Failure Occurs When

question 104

Multiple Choice

Government failure occurs when

• A)Dealing with a natural monopoly.
• B)There is market power.
• C)Government intervention fails to improve economic outcomes.

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Definitions:

American Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with minimal government intervention.

Government Planning

The process by which a government sets priorities, establishes goals, and devises strategies to achieve economic, social, and political objectives.

Voluntary Actions

Behaviors or actions undertaken by choice or will without external coercion.

Civil Society

The realm of organized social life that is voluntary, not-for-profit, and outside of the government, which can include NGOs, clubs, and other nonprofit entities.