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 A Governments may have to make decisions on the basis of out-of-date information.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.

The diagram shows the equilibrium price and quantity of good X. [Figure 15.1] The initial market equilibrium is shown...

In cost-benefit analysis the term net social benefit refers to A private benefit plus social benefit. B social benefi...

A government school is built by private builders in a residential neighbourhood. The builders ignore the effects of n...

From the initial position of equilibrium shown, there is an increase in government expenditure on goods and services ...

The diagram shows a shift in an economy's aggregate demand curve from AD₁ to AD₂. What could not be a cause of the sh...

Which item is not included in the current account on the balance of payments statement?