Practise identifying unintended consequences, information limits and ineffective interventions that can produce government failure in A2 questions.
The government can use policies to try and reduce the environmental damage caused by the amount of rubbish (garbage) created by firms and households.
Which policy to reduce rubbish is most likely to lead to government failure?
an incentive payment for firms who reduce the levels of rubbish
a tax on the amount of rubbish a firm or household creates
an advertising campaign about the problems created by rubbish
government grants to firms researching how to safely dispose of rubbish
B