What Is Government Failure?
What Is Government Failure?
Government failure occurs when government intervention creates a net welfare loss, leaving resources allocated worse than they were before the policy. It often happens when a policy intended to correct market failure creates costs that exceed its benefits.
Step-by-step lessons on Edexcel A A Level Economics 1.4.2 Government failure. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.