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Economists consider governments to be "wasteful": (1) whenever they attempt to correct a market failure (2)...
















Economists consider governments to be wasteful: (1) whenever they attempt to correct a market failure (2) only when they ov
Economists consider governments to be "wasteful": (1) whenever they attempt to correct a market failure (2) only when they overallocate resources to a project (3) whenever they over- or underallocate resources to a project (4) only when they underallocate resources to a project
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Economists consider governments to be wasteful whenever they over allocate or under allocate resources to a project because this results in deadweight loss and leads to inefficiency in the market .Hence, option(3) is correct.

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