Description
Explain the difference between government failure and market failure. Discuss the role of government in a market economy to address market failure. 300-500 words single spaced, at least one reference in APA. No title page needed.
Explanation & Answer
Attached.
Running head: GOVERNMENT FAILURE AND MARKET FAILURE
Government Failure and Market Failure
Institution Affiliation
Date
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GOVERNMENT FAILURE AND MARKET FAILURE
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Introduction
Government failure and market failure are interrelated because a keen analysis of the two
subjects reveals that one may easily cause the other. The presence of any of the failures is a
threat to the survival of the citizens of any nation. A failure on the part of a government to play
its key roles in shaping the economy may easily lead to market failure. Likewise, market failure
can be damaging to the economy hence resulting in a destabilized government (Hetzel, 2014). It
is very critical, therefore, tha...