A book review in the Wall Street Journal quotes economics writer Robert Skidelsky: “The question, of course, is not whether government always succeeds but whether government failure is likely to be greater or lesser than the market failures it seeks to correct.”

a. What does Skidelsky mean by “market failure,” and what does he mean by “government failure”? 

b. Give an example of a market failure and an example of how a government policy might succeed or fail in correcting the market failure.