Practise government microeconomic intervention through market-failure policy, equity, labour markets and behavioural tools using diagrams, data, calculations and evaluation.
What would supporters of a nationalised public transport service expect to be the most likely outcome from the privatisation of train and bus services?
fewer destinations served by trains and buses
lower fares
more frequent services to all destinations
more people employed in public transport services
The government can use policies to try and reduce the environmental damage caused by the amount of rubbish (garbage) created by firms and households.
Which policy to reduce rubbish is most likely to lead to government failure?
an incentive payment for firms who reduce the levels of rubbish
a tax on the amount of rubbish a firm or household creates
an advertising campaign about the problems created by rubbish
government grants to firms researching how to safely dispose of rubbish
When is a policy of income redistribution from rich people to poor people most appropriate?
when control of demand-pull inflation is the priority
when equality is valued more highly than efficiency
when monetary reward is the best incentive to risk-taking
when the rich have higher marginal utility curves than the poor
The chart gives information about the average daily wage rate for all industries in India.
What could have caused this trend in wage rates?
an increase in capital-intensive production
an increase in the number of industrial workers
an increase in the number of people unemployed
an increase in the productivity of labour