# Markets fail to produce an efficient allocation of resources, but government also fail because ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Markets fail to produce an efficient allocation of resources, but government also fail because ? Correct Answer: D. the measurement of social damages and benefits is difficult and imprecise. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Markets fail to produce an efficient allocation of resources, but government also fail because ?

Direct Answer & Quick Reference

The correct option is **D. the measurement of social damages and benefits is difficult and imprecise**.

A. elected officials will act selflessly for the good of society and ignore their own self interest

B. 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

C. the optimal level of public goods may be too expensive for the society to produce

D. the measurement of social damages and benefits is difficult and imprecise **(Correct Answer)**

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Verified Key: D. the measurement of social damages and benefits is difficult and imprecise
Solved by 5,480+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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