Teaching PowerPoints

4.1.8.10 Government Failure (AQA A-Level Economics Teaching PowerPoint)

Level:
A-Level
Board:
AQA

Last updated 2 Nov 2023

This AQA Economics teaching powerpoint covers aspects of Government Failure

Government failure is the inability of a government to efficiently or effectively allocate resources or achieve desired outcomes through its policies and actions. It can occur when government interventions in the economy have unintended negative consequences or fail to achieve their desired objectives. Examples of government failure include:

  • Regulations that stifle innovation or competition.
  • Overly generous subsidies that distort markets and create inefficiencies.
  • Bailouts and subsidies that reward risky behavior and moral hazard.
  • Poorly designed or implemented policies that have negative side effects.
  • Political interference or corruption that distorts policy decisions.

Overall, government failure can lead to market inefficiencies, a misallocation of resources, and reduced economic growth and prosperity.

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