Chapter 6 Gov Failures

Question 1

Give me cause of Gov Failure 1

Answer 1

Information Gaps

Question 2

Give me cause of Gov Failure 2

Answer 2

Lack of incentive or lack of quality

Question 3

Give me cause of Gov Failure 3

Answer 3

Unintended consequences e.g. income tax increasing may discourage employment

Question 4

Give me cause of Gov Failure 4

Answer 4

Excessive Administrative Costs

Question 5

Give me cause of Gov Failure 5

Answer 5

Moral Hazard