DP Economics Questionbank

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.