The Idea of Government Failure Includes All of the Following

question 157

Multiple Choice

The idea of government failure includes all of the following except

• A) special-interest effect.
• B) bureaucratic inefficiency.
• C) pressure by special-interest groups.
• D) extensive positive externalities from public and quasi-public goods.

---

Definitions:

U.S. Dollar

The U.S. Dollar is the official currency of the United States, widely used as a benchmark in global financial markets.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade and production distribution.

Gains from Specialization

The increased efficiency and output that result when individuals or entities focus on specific tasks or activities they perform best.

Exchange Rates

The worth of one currency in relation to another, establishing how much of one currency can be exchanged for another.