Answer to Question #72393 in Microeconomics for Dhanya

Question

Discuss whether high government spending on police and armed forces could be result of market failure

Answer 1

High government spending on police and armed forces can be a consequence of market failures, low levels of economies in countries. Indeed, low economic performance can affect the support of government and parliamentary actions, and people will be dissatisfied with government policies. Therefore, increasing police and armed forces spending by the government will increase the size of the armed forces and the police forces to calm down the dissatisfied population.