A reason for government intervention in the workings of the economy is to attempt to correct for market failure. Sometimes, though, government failure may occur. What is not a possible reason for government failure? A Governments may have to make decisions on the basis of out-of-date information. B Governments may make decisions that reduce negative externalities. C The extent of the market failure may be difficult to judge. D When circumstances change a government may be unable to respond quickly.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] B
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