1.4 lessons Flashcards
1
Q
What is the rationale for government intervention? (5)
A
- Correct market failure
- to discourage demerit goods
- to provide public goods
- to reduce negative externalities
- to correct information gaps/
2- To improve the performance the UK economy in global markets.
3- To address politically unacceptable situations such as price volatility.
2
Q
What are the 4
A
Price controls
gov legislation and regulation
direct provision
taxes and subsidies
