8.1 Government policies to achieve efficient resource allocation and correct market failureSyllabus9708–2026–2027Topic8.1LevelA2
What you’ll learn2 learning objectivesChoose one objective for a focused lesson, or study the complete topic.8.1.1Policies for market failure• Application and effectiveness of measures to tackle different forms of market failure:- specific and ad valorem indirect taxes- subsidies- price controls- production quotas- prohibitions and licences- regulation and deregulation- direct provision- pollution permits- property rights- nationalisation and privatisation- provision of information- behavioural insights and 'nudge' theorySyllabus objective8.1.2Government failure• Government failure in microeconomic intervention:- definition of government failure- causes of government failure- consequences of government failureSyllabus objective