Problem: Select the example which is a government failure, and not simply a market failure. The government implements policies to minimize the harm of false advertising and require disclosure of information about product safety. A principal-agent problem occurs while politicians are designing new regulations to help prevent asymmetric information in the housing market. The nation's major infrastructure of highways, airports, waterways, and urban transit services are public goods financed by taxes collected from individuals and businesses. A socially desirable good or service is not supplied by private firms because it is not considered profitable.