2699EconomicsMedium
Markets fail to produce an efficient allocation of resources, but government also fail because?
Athe optimal level of public goods may be too expensive for the society to produce
Bthe managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departments
Celected officials will act selflessly for the good of society and ignore their own self interest
Dthe measurement of social damages and benefits is difficult and imprecise
Correct answer
D. the measurement of social damages and benefits is difficult and imprecise
Explanation
The correct answer is the measurement of social damages and benefits is difficult and imprecise.