Government officials tend to make:A) better economic decisions than private individuals because of the wealth of information at their disposal.B) better economic decisions than private individuals because of the efficient processes and flexibility built into the government bureaucracy.C) inefficient choices because they lack the information necessary to accurately weigh marginal benefits and marginal costs.D) inefficient choices because the invisible hand directs them away from the resource allocation where marginal benefits equal marginal costs.

Question

Government officials tend to make:A)  better economic decisions than private individuals because of the wealth of information at their disposal.B)  better economic decisions than private individuals because of the efficient processes and flexibility built into the government bureaucracy.C)  inefficient choices because they lack the information necessary to accurately weigh marginal benefits and marginal costs.D)  inefficient choices because the invisible hand directs them away from the resource allocation where marginal benefits equal marginal costs.

Honey Mehta · Accepted Answer

Final Answer : C, Explanation :  Government officials often lack the same incentives and information as private individuals, which can lead to inefficient decision-making. It can be difficult for them to accurately weigh the marginal benefits and costs of various policy options, especially when dealing with complex and multifaceted issues.

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