Th1.4: Gov Failure: Information Gaps

Question 1

Any decision the government must be based on some data, but…

Answer 1

the information they have is always going to be limited e.g you cannot accurately predict the number of cancer patients for that year

Question 2

What does the government do considering cost and benefit forecasts are usually wrong?

Answer 2

invests in a system where the costs are higher than the benefits, so there is welfare loss

Question 3

It is usually………. for the government to get the information they need

Answer 3

impractical and impossible