Which of the following is not true?
A)In democratic countries,governmental decisions are made by some collective decision-making procedure.
B)Political decisions influence the economy.
C)Government ownership of industries is quite common.
D)Showing that markets do not allocate resources efficiently is all that is necessary to show that government can allocate resources more efficiently.

Question

Quizplus · Accepted Answer

Showing that markets do not allocate resources efficiently does not necessarily mean that government can allocate resources more efficiently. It is possible that government intervention can lead to even more inefficiencies or unintended consequences. Therefore, it is not true that showing market inefficiencies automatically proves the superiority of government intervention.

Which of the Following Is Not True