A government introduces a subsidized vocational training scheme to reduce structural unemployment in a struggling regional economy. This policy would inevitably result in government failure if
some local employers expressed dissatisfaction with the skills taught.
the total financial cost of the scheme was 50% higher than the initial budget.
the decrease in structural unemployment was smaller than originally projected.
the total social benefits generated by the scheme were less than its total social costs.
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.