Government Failure Occurs When

Multiple Choice

Government failure occurs when

A) intervention by the government in the market fails to provide the socially optimal quantity of goods produced
B) the government fails to intervene in a market that has sizable externalities
C) the government fails to protect the free market and is forced to nationalize
D) the government must intervene in a market to provide the socially optimal quantity of goods
E) the government imposes a tax when it should have used an obligatory control