Question

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

Answer 1

SOLUTION:-

* There is always apossibility of government failure where the government is not able to achieve the stated goals and turn into a failure. For instance, government tries to improve the sanitation facilities in a country and makes all the facilities available for the common public to improve the sanitation facilities. But if they do not receive the appropriate support from the common people, it turns into market failure and the government is not able to achieve the stated goals.

* Moreover, financial funding and support from all the government officials and common public is very much required in order to achieve the stated goals. Otherwise it turns into market failure.

THANK YOU

If any quearies please leave your valuable comment on comment box..............