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When asked to write about government intervention remember…… 1) What is the market failure? Is the market efficient? Why not? 2) Is intervention justified? 3) Can you use a diagram to show the effects? 4) Consider in your evaluation…. a) Effectiveness of a policy. b) Does a policy improve economic efficiency? c) Are there equity issues? (fairness) d) Are there possibilities for government failure? (unintended consequences, equity issues? costs of collection)