Which of the Following Is an Example of Government Failure

question 125

Multiple Choice

Which of the following is an example of government failure?

• A) A negative externality,such as pollution.
• B) An increase in bureaucracy and red tape that fails to improve economic outcomes.
• C) An increase in airline safety.
• D) An increase in the costs of production and an improvement in economic outcomes.

---

Definitions:

Aggressor

An individual or country initiating hostilities or conflict without provocation.

Shareholder's Direct Suit

A legal action initiated by a shareholder on behalf of themselves against a corporation, typically for mismanagement or violation of rights.

Shareholder

An individual or entity that owns shares in a corporation, giving them ownership interests and possibly voting rights.

Damages

Financial compensation that a person or organization is ordered to pay to another as restitution for harm or injury suffered.