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10 cards from this deck
Govt intervention reducing welfare vs free-market outcome
Conflicting objectives, admin costs, unintended consequences
Favouring short-term gains over long-term benefits
When costs are high relative to benefits achieved
Govt intervention unleashes unforeseen/harmful effects
Creates excess demand and black markets
1996
Significant increase in illegal fly-tipping
Over 392 million USD per year
−0.25-0.25−0.25 (inelastic demand)
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