Intervention (Government)
Government action affecting economy: regulation, taxation, spending, subsidies.
Real World
The UK government intervened in the energy market in 2022 by introducing a price cap on household bills, subsidising costs to prevent energy companies passing the full impact of rising wholesale prices onto consumers.
Exam Focus
For 'evaluate' questions, always weigh whether government intervention creates unintended consequences such as market distortion or reduced business investment.
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