Which of the Following Is an Example of Government Failure

question 65

Multiple Choice

Which of the following is an example of government failure?

• A)Too much regulation resulting in wasted resources.
• B)Public goods.
• C)Externalities.

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Definitions:

Production

The process of creating goods or services using inputs like labor, capital, and raw materials.

Bounded Rationality

The concept that decision-making is limited by the information, cognitive limitations, and time constraints.

Opportunity Cost

The cost of foregone alternatives when one option is chosen over another, essentially the benefits you could have received by taking an alternative action.

Marginal Benefit

The increased benefit derived from the utilization of one more unit of a good or service.