You have learnt that market failure occurs
when markets fail to allocate societies' scarce
effectively.
As a result, governments often intervene in or
allocate resources efficiently, distribute incom
more equitably and improve the overall perfo
the economy.
This happens in a mixed economy, like ours, an
take the form of:
• Indirect taxes
• Subsidies
• Maximum and minimum prices
• Pollution Permits
• State provision of public goods
• Provision of Information
• Regulation
,From the 1.4 - Government
specification... Intervention
, What
causes government
intervention in
markets to fail?
when markets fail to allocate societies' scarce
effectively.
As a result, governments often intervene in or
allocate resources efficiently, distribute incom
more equitably and improve the overall perfo
the economy.
This happens in a mixed economy, like ours, an
take the form of:
• Indirect taxes
• Subsidies
• Maximum and minimum prices
• Pollution Permits
• State provision of public goods
• Provision of Information
• Regulation
,From the 1.4 - Government
specification... Intervention
, What
causes government
intervention in
markets to fail?
