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What Is Government Failure, and How Would It Be Demonstrated

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What is government failure, and how would it be demonstrated on a production possibilities curve?
Government failure occurs when government intervention fails to improve economic outcomes. The production possibilities curve represents the alternative combinations of output that are attainable given the available resources and technology. Government failure means that government intervention has moved the economy to a less optimal point on the production possibilities curve or to a point inside the curve.

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Government failure occurs when governmen...

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