Governments try to cut market failure in several ways, one of which is to put regulation in place. They also make some goods and services themselves by employing people in the public sector.
(a)[2]
Define what is meant by ‘regulation’.
(b)[4]
Explain two causes of market failure.
(c)[6]
Analyse the possible opportunity costs that could arise from an increase in government spending on higher education services.
(d)[8]
Discuss whether government policy measures are able to reduce unemployment.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Rules or laws introduced by a government or organisation” …