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

Multiple Choice

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

A) measurement of social costs and benefits is difficult and imprecise.
B) the optimal level of public goods may be too expensive to produce.
C) elected officials will act only in the public interest.
D) managers of government agencies are trying to maximise the size of their agency.