Economics Public Goods Questions
The concept of government failure refers to situations where government intervention or actions result in outcomes that are less efficient or effective than if the market had been left to operate on its own. It occurs when the government fails to allocate resources efficiently, provide public goods, regulate markets effectively, or achieve desired policy objectives. Government failure can arise due to various reasons such as information asymmetry, bureaucratic inefficiencies, political pressures, and unintended consequences of policies.