Markets can fail to allocate resources efficiently, but why can government also fail?

1. A Option A: Elected officials will act selflessly for the good of society and ignore their own self interest
2. B Option B: The measurement of social damages and benefits is difficult and imprecise
3. C Option C: The managers of government agencies are trying to maximise the profit of their agency and they ignore the implications that this has on other departments
4. D Option D: The optimal level of public goods may be too expensive for the society to produce

Answer checked 11 October 2026 · How we write and check questions