Government Failure

question 280

Multiple Choice

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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Definitions:

Perfection

An ideal state where everything meets the highest standards of accuracy or completeness.

Economic Efficiency

A condition where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.

Economic Efficiency

occurs when resources are allocated in a way that maximizes the production of goods and services at the lowest cost, minimizing waste and inefficiency.

Automobile Safety

Automobile Safety involves the design, equipment, and regulations that aim to minimize the occurrence and consequences of traffic accidents.