(Consider This) Unintended consequences leading to inefficient outcomes are more likely with government programs than in the private sector because:

A) in the private sector the invisible hand guides resources to their best uses when people strive for efficiency.
B) government employees are systematically less competent than those in the private sector.
C) government has no real motive in allocating resources efficiently.
D) laws restrict government officials from considering effects of a policy outside the main objectives of the policy.

Question

MARIA KATHERINE MENORCA · Accepted Answer

Final Answer : A, Explanation :  In the private sector, the profit motive drives individuals and firms to maximize efficiency and allocate resources in a way that maximizes profits. This is guided by the invisible hand of the market, which encourages competition and innovation. On the other hand, government programs are typically not driven by a profit motive, and may have different incentives that can lead to unintended consequences and inefficiencies.

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