Why Governments Intervene
Why Governments Intervene
Market failure occurs when the free market produces an inefficient allocation of resources. Government intervention aims to move output closer to the social optimum, where social costs and benefits are reflected in production and consumption decisions.
Step-by-step lessons covering Edexcel A A Level Economics 1.4.1 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.