Why Governments Intervene
Why Governments Intervene
Market failure occurs when the free market produces an allocation of resources that is not socially efficient. Government intervention aims to move output closer to the social optimum, where social marginal benefit equals social marginal cost.
Step-by-step lessons on Edexcel A A Level Economics 1.4.1 Government intervention in markets. 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.