Government intervention to correct market failures may face special problems in a democracy because democratic decision...

Question

Question

Government intervention to correct market failures may face special problems in a democracy because democratic decision making

A) can reallocate resources to compensate the economic losers from policy changes.

B) can be relied on to make consistent choices.

C) can tend to underrepresent special interests.

D) may fail to take into account the intensity of voter's preferences.

E) All of the above.

Answer 1

Answer #1

Q) Government intervention to correct market failures may face special problems in a democracy because democratic decision making

Answer- (D) May fail to take into account the intensity of voter's preferences.

Answer 2

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