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.

Question

Quizplus · Accepted Answer

Government failure occurs when government intervention fails to improve economic outcomes or even makes them worse. An increase in bureaucracy and red tape is an example of government failure because it can stifle economic growth and create inefficiencies, without achieving the intended goals. Negative externality (choice A) is not an example of government failure, as it is a market failure that can be addressed by government intervention. Choices C and D are not examples of government failure, as they refer to positive outcomes that may result from government intervention.

Which of the Following Is an Example of Government Failure