Asked by
Tracy Hower
on Dec 11, 2024
Verified
Economic analysis indicates that
A) there is government failure, but not market failure.
B) there is market failure, but not government failure.
C) there is both government failure and market failure.
D) there is neither government failure nor market failure.
Government Failure
Situations where government interventions in the market lead to inefficiencies, misallocation of resources, or failure to achieve desired social or economic outcomes.
Market Failure
A situation in which the allocation of goods and services by a free market is not efficient, often justifying government intervention.
- Describe the circumstances in which markets do not attain economic efficiency.
- Discern and scrutinize circumstances of government inefficiency and its impact on the allocation of resources.
Verified Answer
ST
Learning Objectives
- Describe the circumstances in which markets do not attain economic efficiency.
- Discern and scrutinize circumstances of government inefficiency and its impact on the allocation of resources.