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Market Mechanism, Market Failure and government intervention
Government Intervention to Correct Market Failure
Intervention 4 - State Provision
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What is State Provision?:
State provision occurs when the
government intervenes
in the
market
in order to
supply
a
good
or a
service
What is state provision?
State provision occurs when the government
intervenes
in the
market
in order to
supply
a
good
or a
service
State provision occurs when:
A merit good e.g education and the NHS
Public good e.g
roads