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List and give an example of each of the four types of market failure.

What are the reasons for why we need government intervention?

pur-new-sol

Type of Market Failure	Example	Government Action/Solution
Externalities--some of the internal costs are not borne by the business	Pollution of air and water	Regulations (Environmental Protection Act)
Abuse of Market Power	Monopolies/Oligopolies such as the oil industry	Anti-trust laws
Public Goods--things that the market will not provide because there is no profit	National Parks	Government provides
Inequality--systemic differences in income or opportunity	Education	Free Public Education

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