1.3.6.2b - Causes of government failure

Causes of government failure include information gaps, lack of incentives, unintended consequences, excessive administrative costs and moral hazard.

Use b - causes of government failure to connect the rule to the data and decision in the question.

This matters because b - causes of government failure determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - causes of government failure to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Causes of government failure is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.