Reasons for government intervention in markets (3)

Resources | Revision Questions | Economics

Login to see all questions

Click on a question to view the answer

1.

The UK government has introduced a price cap on energy bills. Discuss the likely consequences of this policy for both consumers and energy suppliers.

2.

Question 1: Discuss how market failure arises with respect to the provision of public goods. Evaluate the effectiveness of government intervention in addressing this market failure, considering the potential drawbacks of such intervention.

3.

Question 2: Consider the provision of national defence as a public good. Using the concepts of externalities and public goods, explain why it is considered a merit good and discuss the arguments for and against government provision of national defence.