Study Notes

Analysing and Evaluating Government Intervention in Markets

Level:
AS, A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 2 Jul 2018

This study note provides an overview of the different forms of government intervention in markets

Evaluating government intervention - revision video
Government intervention
Indirect taxes - revision video
Producer subsidies - revision video
Maximum prices - revision video

Summary - evaluating government intervention in markets

  • How significant is the market failure? (consequences)
  • Can the market / price mechanism find some solutions?
  • What are the likely consequences of not intervening?
  • How effective is an intervention? (i.e. consider alternatives)
  • Who are the winners / losers from an intervention?
  • Consider the potential for one or more government failures
  • Which works best – market-based or regulatory (“command and control”) approaches?
  • What impact might behavioural interventions have?

© 2002-2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.