Tuesday, May 19, 2009

Unit 1: Government intervention to overcome market failure: Regulation in the US car industry

This BBC post is a good example of Government intervention to overcome market failure using regulation

http://news.bbc.co.uk/1/hi/world/americas/8056908.stm

a) What is the market failure that the government is trying to reduce?
b) How effective do you believe this policy is likely to be in reducing the market failure?

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