From the choices, please select the major factors that result in government failure.

Choice 1: The United States uses a graduated tax system.
Choice 2: Production decisions are often made independently of government oversight.
Choice 3: Public choices involve many actors with their own economic objectives.
Choice 4: Correctly diagnosing the cause of a market failure is difficult.
Choice 5: Politicians often want to keep constituents happy more than they want to correct market failures.

Decisions related to production with no government intervention
The choices made by the public include many factors as per the economic objectives.
Political leaders focus more on making the voters happier and ignores the market failures.

Second, third and fifth are the correct choices.

What is a government failure?

A government failure arises when the interference made by government resulted in the uneconomical and inefficient allocation of goods or services.

The factors that lead to failure on the part of the government are as follows:

When the production related matters are taken by businesses on their own and without intervention of government, then it leads to uneven distribution of goods or services as well as wastage of resources.
Many factors affect the choices being taken by public and if the government fails in taking those decisions, then it might worsen the economic scenario.
The government always gives more priority to their voters by providing them the needed facilities and ignored the failures of market. This will might lead to inflation in the country.

Therefore, apart from first and fourth choice, the rest of the options are considered to be the factors in creating government failure.

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