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1.2 Individual economic decision making (A-level only)

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Question 11

‘In many modern economies, consumers make choices with incomplete or inaccurate knowledge about the long-term consequences of their consumption habits.’

Explain how imperfect information can lead to market failure in the markets for preventative health screenings (e.g. cardiovascular health checks) and disposable electronic cigarettes (vaping products).

Your explanation should include relevant microeconomic diagrams showing the divergence between perceived and actual marginal private benefits.

Market Failure due to Imperfect Information

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1.2 Individual economic decision making (A-level only) Questions

  1. A Level
  2. /Economics
  3. /1.2 Individual economic decision making (A-level only)