"Government Failure" Is Present When

question 71

Multiple Choice

"Government failure" is present when

• A) constitutional restrictions block government action that is favored by the majority of voters.
• B) political decision-makers try to serve the general public rather than their personal interest.
• C) the structure of incentives encourages political decision-makers to undertake actions that conflict with the efficient allocation of resources.
• D) the political decision-makers are motivated by something other than good intentions; if they have good intentions, political action will allocate resources efficiently.

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U.S. federal law designed to promote informed use of consumer credit, by requiring disclosures about its terms and cost.

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