Keyword: «information asymmetry»

The concepts of market failures and government failures are often given as arguments of supporters and opponents of government intervention in the economy, that is why the problem under study is urgent. The purpose of the article is to analyze the effects of market failures and government failures on the economy. According to the results of the study, it was found that the market can cope with many failures (information asymmetry, external effects), and government intervention can sometimes aggravate the situation.