There is government failure when
A) policymakers are captured by special interest groups.
B) policymakers make mistakes based on poor information.
C) government policy fails to serves the public interest.
D) lobbying and political pressure cause government to act for special interest groups.
E) all of the above.

Question

Quizplus · Accepted Answer

Government failure can occur for any of the reasons listed in options A, B, C, and D. When policymakers are captured by special interest groups, they may make decisions that primarily benefit those groups rather than serving the public interest. Similarly, mistakes based on poor information can lead to faulty policies that don't achieve their intended goals. When government policy fails to serve the public interest, this can be a clear indication of government failure. Finally, lobbying and political pressure from special interest groups can cause government to act in their favor, potentially at the expense of the broader public interest. As such, all of the above can contribute to government failure.

There Is Government Failure When