Answer to Question #216418 in Economics for Nana k

Question

Market inefficiency is necessary condition but not sufficient for government intervention ". Examine this claim in the context of the fight against the COVID-19 pandemic in Ghana

Answer 1

Market failure from a welfare economics position is a circumstance where the pursuit of private interest does not lead to an efficient use of society's resources or a fair distribution of society's goods.

This definition refers to the free market's inability to supply a sufficient amount of public goods, which then necessitates government-led solutions. Accordingly, market failures represent a necessary, but not sufficient condition for government intervention.

Throughout the pandemic, the government partnered with the private sector in order to roll out economic reliefs and recovery programs as a result of the impact of the pandemic on Ghana's economy. There was also an expansion of medical facilities and the improvement of testing logistics.