Why Governments Intervene
Why Governments Intervene
Government intervention is action taken through taxation, subsidies, regulation, state provision and other policies to influence the allocation of resources. The main rationale is market failure, where the free market produces an allocation that does not maximise social welfare.
Step-by-step lessons covering AQA A Level Economics 1.8.9 Government intervention in markets for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.