Policy Intervention Essay Discussion Paper
1. identify situations where markets succeed and function efficiently
2. identify situations where health care expenditures have been rapidly declining
3. identify situations in which markets fail or do not function efficiently
4. none of the above
- Correcting market failures: Policy intervention can be used to correct market failures, which occur when the free market fails to allocate resources efficiently. For example, the government may intervene to address negative externalities (such as pollution) or to provide public goods (such as national defense).
- Promoting social welfare: Policy intervention can also be used to promote social welfare by addressing income inequality, poverty, and other social issues. For example, the government may provide social welfare programs, such as food stamps or housing subsidies, to help individuals and families in need.
- Encouraging economic growth: Policy intervention can also be used to encourage economic growth by promoting investment, innovation, and entrepreneurship. For example, the government may provide tax incentives or subsidies to businesses that invest in research and development or expand their operations Policy Intervention Essay Discussion Paper