Asked by Nicole Nagatoshi on Jul 18, 2024
Verified
List the five major sources of government failure.
Government Failure
Government failure occurs when government intervention in the economy creates inefficiencies or leads to an allocation of resources that is worse than what the market would have produced on its own.
- Identify and explain sources of government failure.
Verified Answer
BV
Bliss VillanuevaJul 23, 2024
Final Answer :
The five major sources of government failure are (1)the principal-agent problem, (2)the special-interest effect, (3)the collective-action problem, (4)rent seeking, and (5)political corruption.
Learning Objectives
- Identify and explain sources of government failure.