1.8 How do governments attempt to correct market failure?

Tuesday, May 21, 2013


What students need to learn:

Students should be able to:
Additional Guidance Notes
Methods of government intervention
Understand the different measures of government intervention to correct market failure, for example, indirect taxation, subsidies, buffer stocks, tradable pollution permits, extension of property rights, state provision and regulation.

Apply, analyse and assess the effectiveness of each method of government intervention for correcting market failure.
Students should be able to apply government economic measures in various contexts, for example, road pricing, landfill tax, carbon offsetting and carbon emissions trading, renewable energy certificates.

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