Answered step by step
Verified Expert Solution
Question
1 Approved Answer
51. Most introductory economics textbooks have a section on market failure. It is here that students learn that markets may fail to achieve their
51. Most introductory economics textbooks have a section on "market failure." It is here that students learn that markets may fail to achieve their potential - leaving people worse off than they theoretically could be. The existent of market failure is often taken as an excuse for government intervention to do whatever markets fail to do. In just a couple of sentences, explain why economists (and others, particularly politicians) must accept the possibility of "government failure" as well? That is, tell me why government solutions to perceived market "failures" may themselves fail to achieve their own stated goals? The U.S. Drug war is an apt example of a discrepancy between a stated political policy goal and the actual attainment of that goal.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started