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) 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.