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1.4.2 Government Failure (Edexcel A-Level Economics Teaching PowerPoint)


Last updated 28 Sept 2023

This teaching powerpoint covers government failure.

In economics, government failure refers to a situation in which government intervention in the economy leads to a less efficient outcome than would have occurred if the government had not intervened. Government failure can happen for a variety of reasons. One common reason is that the government lacks the information or resources necessary to effectively implement a policy. Another common reason is that the government's objectives are too complex or contradictory. For example, the government may want to achieve both economic growth and environmental protection, but these goals may be in conflict. Finally, government failure can also occur due to political pressure or special interest groups.

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