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1.4.2 Government failure

What must occur for an intervention to count as government failure?

A

A genuine net welfare loss: intervention leaves resources allocated worse than before.

B

Any fall in consumer satisfaction: intervention becomes less popular than before.

C

A reduction in private-sector output: intervention lowers market production.

D

A change in relative prices: intervention alters the market outcome.

1.4.2 Government failure Flashcards

  1. A Level
  2. /Economics
  3. /1.4.2 Government failure

Flashcards for Edexcel A A Level Economics 1.4.2 Government failure, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 26 cards, matched to the Edexcel A A Level Economics (9EC0) specification.