Markets Fail to Produce an Efficient Allocation of Resources, but Governments

question 24

Multiple Choice

Markets fail to produce an efficient allocation of resources, but governments also fail because

• A) the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departments.
• B) the optimal level of public goods may be too expensive for the society to produce.
• C) elected officials will act selflessly for the good of society and ignore their own self-interest.
• D) the measurement of social damages and benefits is difficult and imprecise.

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Definitions:

Driving

The act of operating and controlling a vehicle, such as a car or a motorcycle, on roads.

Radiation Exposure

The act of being exposed to ionizing or non-ionizing radiation which can occur naturally or through human activities.

X-Rays

A form of electromagnetic radiation used in medical imaging to create images of the inside of the body.

Tobacco Use

The act of consuming tobacco products, including smoking cigarettes, cigars, or using smokeless tobacco.