An Analysis of Market Failure and Government Failure Indicates

Multiple Choice

An analysis of market failure and government failure indicates

A) government decision making is always preferable to using markets.
B) market decision making is always preferable to public-sector action.
C) government action is necessary whenever market failure occurs.
D) both the market and the government may fail to meet conditions of economic efficiency; in each individual case, the choice of market or public-sector action requires careful evaluation.