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 A Governments may have to make decisions on the basis of out-of-date information.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.
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The correct answer is —. This question tests the candidate's understanding of market failure and government intervention within the Economicssyllabus. The examiner's mark scheme requires...
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