Government failure refers to a. the inability of government to tax negative externalities. b. the inability of

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Government failure refers to

a. the inability of government to tax negative externalities.

b. the inability of government to estimate how much tax is needed to cover the costs of negative externalities.

c. the inability of government to identify which economic activities generate negative externalities.

d. the failure of government to buy quantities of public goods that represent an efficient use of resources.

e. the failure of government to buy public goods that serve the public need rather than special interests.

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