Ace the A Level Economics AQA Exam 2026 – Power Up and Conquer the Market!

The choice highlighting the potential for excessive administration costs to contribute to government failure is accurate because high administrative costs can lead to inefficiencies in government programs. When a significant portion of resources is consumed by administrative processes rather than directed towards their intended purposes, it can hinder the effectiveness of public initiatives. This misallocation of resources may result in negative outcomes for society, leading to government failure, where the government is unable to meet its objectives or appropriately address social needs.

In contrast, higher taxes for the general public may arise as a response to funding challenges but are not a direct effect of excessive administration costs alone. Improved efficiency of government programs and increased consumer satisfaction are also unlikely to result from excessive costs; rather, they suggest a well-functioning system, which contradicts the implications of high administrative expenditures.