What is Government Failure? I A Level and IB Economics скачать в хорошем качестве

What is Government Failure? I A Level and IB Economics

What do we mean by government failure? This revision video looks at lots of topical examples of where well-intentioned intervention in markets can often result in deeper problems being created. Government failure occurs when an intervention leads to a deeper market failure or even worse a new failure may arise In other words – government failure is when intervention leads to an even bigger deadweight loss and allocative inefficiency, than the free market outcome. Another definition – when government intervention causes a more inefficient allocation of goods and resources than would occur without that intervention Policies may have damaging long-term consequences for the economy or society Policies may prove to be inequitable – i.e. cause an increase in inequality of income and wealth #aqaeconomics #ibeconomics #edexceleconomics