Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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

image text in transcribed

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

15th edition

978-1337395250

Students also viewed these Mathematics questions

Question

Find the complement and the supplement. 3/8

Answered: 1 week ago