Government interventions, such as taxes and subsidies, always lead to greater market efficiency by correcting all types of market failures.

Government interventions like taxes and subsidies are tools that can help improve market efficiency, but they do not always correct all market failures. Market failures happen when the free market does not allocate resources in a way that benefits everyone, like when pollution harms the environment. For example, if a factory pollutes a river, a government tax on pollution can encourage the factory to reduce waste, leading to cleaner water. However, sometimes taxes can create extra costs that might discourage businesses from operating, and subsidies can lead to overproduction of certain goods, which might not be efficient. Therefore, while these interventions can help in some cases, they don't guarantee perfect solutions for every market failure.