ernment Failure" is defined as a situation in which Question 22 options: 1) the free market outcome is inefficient, in that there is a positive Deadweight Loss at the free market level of trade 2) a situation in which Total Social Surplus is decreased by government intervention in a market 3) the sum of gains and losses over all people in society is positive in value 4) a seller has substantial control over the price of the good that she sells