A government wants to improve economic efficiency in the country. It increases the income tax rate, causing high-earning skilled workers, whom the country needs, to emigrate. How would this result be described?
- Agovernment failure: no; market failure: no; negative externality: yes
- Bgovernment failure: no; market failure: yes; negative externality: no
- Cgovernment failure: yes; market failure: yes; negative externality: no
- Dgovernment failure: yes; market failure: no; negative externality: no