Watch the video below and while you are watching, be listening and watching for answers to the following questions:

1. What are the main causes of market failure?

2. What are the two primary ways that governments deal with market failure?

3. Using one of the real-life examples mentioned in the video, or thinking of your own real example, describe how the government dealt with the market failure. Was it effective or ineffective? Could the market failure have been handled in a different, more effective way?

After answering these questions, please submit your assignment.