General Studies · Public Choice Theory and Government Failure
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: Government interventions do not inherently correct market failures and can systematically produce inefficient or undesirable policy outcomes. Reason R: Decision-making in governance is driven by self-interested actors and organized interest groups who engage in rent-seeking behaviors to gain personal advantages through political means. In the light of the above statements, choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and R are correct but R is NOT the correct explanation of A
- 2Both A and R are correct and R is the correct explanation of A✓
- 3A is correct but R is not correct
- 4A is not correct but R is correct
Correct answer
Both A and R are correct and R is the correct explanation of A
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