Saturday, December 22, 2007

Unit 2: Failure of government intervention to overcome the market failure : Minimum wage

This BBC article shows that Government actions to overcome market failure do not always succeed

http://news.bbc.co.uk/1/hi/uk/7157056.stm

a) What is the market failure?
b) What action has the government taken to alleviate the market failure?
c) Why is this action failing?
d) How could the government ensure that its policy was more successful?

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