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Government intervention GapFill
Target Level
C
Running Total
0
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Attempt
1 of 3
You must fill all the gaps before clicking ‘Check Answers!’
Government intervenes to correct
failure. It uses various tools such as taxation, subsidies, price controls, and regulations, among others. Public provision is used to address market failure caused by underproduction of
goods. Maximum prices (price
) and minimum prices (price
) are also used by the government to correct market failure.
need to be
as a control measure of their activities.
failure occurs when government intervention causes
allocation of resources. One of the causes of government failure is
gaps.