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1.4.2 Government failure
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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 under the original market failure. The intervention may be unpopular, but it is only government failure if society is genuinely worse off overall.

1.4.2 Government failure Lesson

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

Step-by-step lessons covering Edexcel A A Level Economics 1.4.2 Government failure 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.