According to an Economic Principle, What Is the Effect of Government

question 30

Multiple Choice

According to an economic principle, what is the effect of government intervention in the presence of a market failure?

• A) Government action does not improve on the market outcome because sometimes public policies simply reward the politically powerful.
• B) Government action does not improve on the market outcome because some leaders are not fully informed.
• C) Government action can sometimes improve on the market outcome.
• D) Government action will always improve on the market outcome.

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Definitions:

Complexities

denotes the degree of intricacy, difficulty, or diversity presented by a problem, system, or environment, often implying a challenge in understanding or resolution.

Linearly

In a manner that follows a straight or direct path or sequence of events.

Exponentially

At a rapidly increasing rate, where the growth rate itself becomes continuously larger.

Information Management

The practice of collecting, storing, managing, and distributing information in an effective and efficient manner.