DP Economics Questionbank

Discuss the view that competitive markets will always achieve allocative efficiency.

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]).

Examine the view that the best allocation of resources, from society’s point of view, occurs where the marginal private benefit equals the marginal private cost.

Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).

Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).

Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).

Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).

Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).

Using an AD/AS diagram, explain how the construction of the China–Laos railway will contribute to economic growth in Laos (paragraph [1]).

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

Explain why merit goods tend to be under-provided in a free market.

Using an externalities diagram, explain how coal-fired power plants in the US might be causing market failure (paragraphs [3] and [4]). 

Using an externalities diagram, explain how manufacturing companies in Brazil are contributing to market failure (paragraph [7]). 

Using an externalities diagram, explain how dependence on coal could be a source of market failure (Text B, paragraph [3]).

Using a diagram and the information above, explain why traffic congestion in India may be considered an example of market failure.

Using the text/data provided and your knowledge of economics, recommend a policy which could be introduced by the government of India in order to address the problem of traffic congestion in New Delhi.

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

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.

Using real-world examples, evaluate different approaches to managing common access resources.

Using the text/data provided and your knowledge of economics, recommend a policy which could be introduced by the government of India in order to address the problem of traffic congestion in New Delhi.

To what extent is advertising the most effective way of increasing the consumption of merit goods?

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.

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.

Discuss the view that tradable permits are more effective than taxes in reducing pollution.

Discuss the significance of income elasticity of demand for producers of primary products and producers of manufactured goods when incomes are rising.

Evaluate the use of carbon taxes to reduce threats to sustainability.

Using real-world examples, evaluate different approaches to managing common access resources.

Using the text/data provided and your knowledge of economics, recommend a policy which could be introduced by the government of India in order to address the problem of traffic congestion in New Delhi.

Define the term sustainability indicated in bold in the text (paragraph [6]).