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From course:

Economics A Level

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Question:

So why may the Government not be able to Avoid Government Failure?

Author: go kys



Answer:

-Usually trying to Complete One Government Objective can Negatively Impact another. Taxing more the Pollutions Firms can lead to Unemployment -Short Term Solutions, due to Pressure, may Solve Issues Quickly, but the Long Term is under more Stress. -Governments, due to Imperfect Information, may make the Wrong Call and so therefore make Market Failure there. [Don’t know how Consumers Act eg] -Large Amount of Resources can be used to try and Correct Market Failure, as well as Policing. Opportunity Cost?


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go kys
go kys