A-Level CAIE Economics A2 8.1.1—Policies for market failure Question Bank

• 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' theory