DP Economics Questionbank
1.4 Market failure
Description
[N/A]Directly related questions
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20N.1.SL.TZ0.1b:
Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.
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20N.2.HL.TZ0.3c:
Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).
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20N.2.HL.TZ0.4a.ii:
Define the term asymmetric information indicated in bold in the text (paragraph [6]).
- 20N.1.SL.TZ0.1a: Explain how production that causes pollution leads to market failure.
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20N.2.SL.TZ0.3c:
Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).
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16N.1.SL.TZ0.2b:
Examine the consequences of the lack of a pricing mechanism for common access resources.
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16N.1.HL.TZ0.2b:
Discuss whether there should always be direct provision of public goods by the government.
- 16N.1.HL.TZ0.2a: Explain why the under-consumption of merit goods causes market failure.
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16N.3.HL.TZ0.1a:
Define the term monopoly power.
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21M.1.SL.TZ2.2b:
Discuss the view that tradable permits are more effective than taxes in reducing pollution.
- 21M.1.SL.TZ2.2a: Explain the concept of positive externalities of consumption.
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21M.1.HL.TZ1.1b:
Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.
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21M.1.SL.TZ1.1b:
Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.
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21M.2.HL.TZ0.3b:
Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).
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21M.2.SL.TZ0.4c:
Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).
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17M.1.SL.TZ1.02b:
Discuss whether advertising by the government is the most appropriate way of increasing consumption of a merit good.
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17M.1.SL.TZ1.02a:
Explain why the consumption of merit goods, such as healthy food, can lead to positive externalities of consumption.
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17M.1.HL.TZ1.01a:
Explain how the overuse of common access resources can lead to negative externalities.
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17M.1.SL.TZ2.02a:
Explain why demerit goods are an example of market failure.
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17M.1.HL.TZ1.01b:
Discuss the view that the best way to reduce the threat to sustainability, arising from the burning of fossil fuels, is for the government to provide subsidies to firms that produce energy through renewable sources.
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17M.1.SL.TZ2.02b:
Evaluate the effectiveness of using indirect taxation to correct market failure.
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21M.3.HL.TZ0.3c:
State two government responses to the abuse of monopoly power.
- 21M.3.HL.TZ0.3b: Using a diagram to support your answer, explain how monopoly power can create a welfare loss.
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18M.1.SL.TZ1.2b:
Discuss the view that competitive markets will always achieve allocative efficiency.
- 18M.1.SL.TZ2.2b: Evaluate whether the use of carbon taxes is the most effective way for the government to deal...
-
18M.1.HL.TZ1.2b:
Discuss the view that legislation is the best way of dealing with the problem of monopoly power.
- 18M.1.SL.TZ2.2a: Explain why the exploitation of common access resources, such as uncontrolled fishing, might pose...
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18N.2.HL.TZ0.3b:
Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).
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18N.1.SL.TZ0.1b:
To what extent is advertising the most effective way of increasing the consumption of merit goods?
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19M.2.HL.TZ0.3c:
Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).
- 19M.1.SL.TZ2.2a: Explain why public transport, such as buses and trains, might be under-provided in a market economy.
- 19M.1.SL.TZ1.2b: Evaluate the view that the most effective way in which the government can encourage the...
- 19M.1.HL.TZ2.1b: Evaluate the view that the most effective way in which the government can discourage the...
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19M.1.HL.TZ2.1a:
Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.
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19M.1.SL.TZ2.2b:
Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.
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19N.1.SL.TZ0.2b:
Discuss the implications of the direct provision of public goods by a government.
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19N.2.HL.TZ0.3b:
Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).
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19N.2.SL.TZ0.1a.ii:
Define the term sustainability indicated in bold in the text (paragraph [6]).
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19N.2.HL.TZ0.4c:
Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).
Sub sections and their related questions
The meaning of market failure
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18M.1.SL.TZ1.2b:
Discuss the view that competitive markets will always achieve allocative efficiency.
Types of market failure
-
16N.1.SL.TZ0.2b:
Examine the consequences of the lack of a pricing mechanism for common access resources.
- 16N.1.HL.TZ0.2a: Explain why the under-consumption of merit goods causes market failure.
-
16N.1.HL.TZ0.2b:
Discuss whether there should always be direct provision of public goods by the government.
-
16N.3.HL.TZ0.1a:
Define the term monopoly power.
-
17M.1.SL.TZ1.02a:
Explain why the consumption of merit goods, such as healthy food, can lead to positive externalities of consumption.
-
17M.1.SL.TZ1.02b:
Discuss whether advertising by the government is the most appropriate way of increasing consumption of a merit good.
-
17M.1.SL.TZ2.02a:
Explain why demerit goods are an example of market failure.
-
17M.1.SL.TZ2.02b:
Evaluate the effectiveness of using indirect taxation to correct market failure.
-
17M.1.HL.TZ1.01a:
Explain how the overuse of common access resources can lead to negative externalities.
-
17M.1.HL.TZ1.01b:
Discuss the view that the best way to reduce the threat to sustainability, arising from the burning of fossil fuels, is for the government to provide subsidies to firms that produce energy through renewable sources.
-
18M.1.HL.TZ1.2b:
Discuss the view that legislation is the best way of dealing with the problem of monopoly power.
- 18M.1.SL.TZ2.2a: Explain why the exploitation of common access resources, such as uncontrolled fishing, might pose...
- 18M.1.SL.TZ2.2b: Evaluate whether the use of carbon taxes is the most effective way for the government to deal...
-
18N.1.SL.TZ0.1b:
To what extent is advertising the most effective way of increasing the consumption of merit goods?
-
18N.2.HL.TZ0.3b:
Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).
- 19M.1.SL.TZ1.2b: Evaluate the view that the most effective way in which the government can encourage the...
- 19M.1.SL.TZ2.2a: Explain why public transport, such as buses and trains, might be under-provided in a market economy.
-
19M.1.SL.TZ2.2b:
Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.
-
19M.1.HL.TZ2.1a:
Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.
- 19M.1.HL.TZ2.1b: Evaluate the view that the most effective way in which the government can discourage the...
-
19M.2.HL.TZ0.3c:
Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).
-
19N.1.SL.TZ0.2b:
Discuss the implications of the direct provision of public goods by a government.
-
19N.2.SL.TZ0.1a.ii:
Define the term sustainability indicated in bold in the text (paragraph [6]).
-
19N.2.HL.TZ0.3b:
Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).
-
19N.2.HL.TZ0.4c:
Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).
- 20N.1.SL.TZ0.1a: Explain how production that causes pollution leads to market failure.
-
20N.1.SL.TZ0.1b:
Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.
-
20N.2.SL.TZ0.3c:
Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).
-
20N.2.HL.TZ0.3c:
Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).
-
20N.2.HL.TZ0.4a.ii:
Define the term asymmetric information indicated in bold in the text (paragraph [6]).
-
21M.1.SL.TZ1.1b:
Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.
-
21M.1.HL.TZ1.1b:
Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.
- 21M.1.SL.TZ2.2a: Explain the concept of positive externalities of consumption.
-
21M.1.SL.TZ2.2b:
Discuss the view that tradable permits are more effective than taxes in reducing pollution.
-
21M.2.SL.TZ0.4c:
Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).
-
21M.2.HL.TZ0.3b:
Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).
- 21M.3.HL.TZ0.3b: Using a diagram to support your answer, explain how monopoly power can create a welfare loss.
-
21M.3.HL.TZ0.3c:
State two government responses to the abuse of monopoly power.