One motive for government intervention in the operation of the economy is to try to fix market failure. However, government failure can sometimes happen. Which of the following is not a possible cause of government failure?
- AGovernments may have to make decisions on the basis of out-of-date information.
- BGovernments may make decisions that reduce negative externalities.
- CThe extent of the market failure may be difficult to judge.
- DWhen circumstances change, a government may be unable to respond quickly.