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

Economic Affairs Planning in India

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

Elected officials will not act selflessly for the good of society and promote their own self-interest, apart from failing in thoughtful planning and vigorous implementation

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

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

The measurement of social damages and benefits is difficult and imprecise

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Explanation:

1st option is correct.
Markets fail to produce an efficient allocation of resources, but governments also fail because elected officials will not act selflessly for the good of society and promote their own self-interest, apart from failing in thoughtful planning and vigorous implementation.