The term government failure refers to the

A) large losses suffered by publicly owned water, gas, and electric companies.
B) large number of bankruptcies that have occurred recently among local governments.
C) economically inefficient outcomes caused by voting problems or incentive structures in government.
D) inability of government agencies to provide adequate police protection in low-income neighborhoods.

Government Failure

Occurs when government intervention in the economy causes more harm than good, leading to inefficient allocation of resources or failing to achieve desired policy outcomes.

Economically Inefficient Outcomes

Situations where resources are not allocated optimally, leading to wasted potential or benefits.

Incentive Structures

Systems or processes designed to motivate individuals to perform certain actions by offering rewards or punishments.