Government Intervention in the Free Market

Study the reasons governments intervene in markets and the effects that intervention can have on consumers, producers and society.

What you will learn

• Market failure and the role of government.
• Indirect taxes, subsidies, price ceilings and price floors.
• Externalities, public goods and information gaps.
• Benefits, costs and unintended effects of intervention.

Study focus

Compare the outcome without intervention with the outcome after the policy is introduced.