According to an Economic Principle, What Is the Effect of Government

Multiple Choice

According to an economic principle, what is the effect of government intervention in the presence of a market failure?

A) Government action does not improve on the market outcome because sometimes public policies simply reward the politically powerful.
B) Government action does not improve on the market outcome because some leaders are not fully informed.
C) Government action can sometimes improve on the market outcome.
D) Government action will always improve on the market outcome.