Government Intervention- 8 HASS

The free operation of the market system sometimes results in resources not being used in ways that efficiently satisfy needs and wants of consumers.

This is known as...

• Market Failure

• The Economy

• Living Standards

• Circular Flow of Income Model

Match the correct term to this definition:

Become involved to alter an outcome

• Intervene

• Government

• Market Failure

• Living Standards

Match the correct term to this definition:

The quality of housing, material comfort, and wealth experienced by an individual or group.

• Intervene

• Government

• Market Failure

• Living Standards

The government can ___________ in the economy to protect the living standards of Australians. This usually occurs when there has been market failure and resources are not being used efficiently.

The government can intervene in the economy to protect the __________ _____________ of Australians. This usually occurs when there has been market failure and resources are not being used efficiently.

The government can intervene in the economy to protect the living standards of Australians. This usually occurs when there has been market failure and resources are not being used ____________.

Select the three main reasons as to why a government may intervene in the economy

• Re-allocation of resources

• Regulation of economic activity

• Redistribution of income

• Recession

When regulating economic activity the government influences the rate of ______________ ____________ through changes in the interest rates, taxes and government spending.

Choose the correct answer

• The government intervenes to decrease income inequality

• The government intervenes to increase income inequality

Unemployment benefits and pensions are examples of which redistribution of income strategy?

• Progressive income tax

• Welfare benefits

• Provisions of community services

• regulation of wages