EconomicsCode 9708
Government policies to achieve efficient resource allocation and correct market failure
What this topic asks you to be able to do
- how measures against the different forms of market failure are applied and how effective they are: property rights; subsidies; pollution permits; price controls; nationalisation and privatisation; production quotas; provision of information; prohibitions and licences; behavioural insights and ‘nudge’ theory; direct provision; regulation and deregulation; indirect taxes, both specific and ad valorem
- what counts as government failure in microeconomic intervention: its definition; its causes; its consequences