Market failure

Q3(b) Select the most probable cause of a free market missing the social optimum.

Q1 Pick out which listed situation counts as a market failure (housing bubble, regulation costs, a loss-making firm leaving, side effects).

Q6(g) Evaluate the drawbacks of leaving the provision of television content entirely to the free market.

Q12(a) State what Extract A's term market failure means.

Q4(b) Which case shows market failure arising in a free market? (welfare loss from intervention / entry attracted by higher prices / positive-externality goods under-supplied / prices rising on excess demand)

Q3 Pick the option that counts as market failure (public goods underprovided through free riding / output rising on higher prices / admin costs from regulation / state healthcare reaching the social optimum).

Q6(b) Assess how rising drop-out rates among poorer students (Extract B) affect the way an economy allocates resources.

Q2 Market failure is illustrated by which one of these options? (excessive administration costs of regulation / diminishing marginal utility / a stock market bubble / unintended consequences of a tax)

Q3 Spot the market failure among: too many flood defences, insurance-funded over-prescribing by doctors, firms reallocating output when prices fall, or an indirect tax's side effects.

Q3 Select the option that illustrates market failure (lower prices shifting production / excessive regulatory administration costs / over-provision of street lights / insured consumers taking more risks).