Which of the following scenarios is the most direct illustration of government failure rather than a market failure?
The under-allocation of resources to primary healthcare due to consumers underestimating the long-term private benefits of inoculation
A regulatory body capping household water tariffs at a level that prevents water utilities from investing in infrastructure, leading to chronic water shortages and network decay
A steel manufacturer failing to account for the social costs of its air pollution, resulting in a deadweight loss to society
Private firms refusing to supply street lighting in urban areas due to the inability to prevent non-paying residents from using the service
