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1.8 The market mechanism, market failure and government intervention in markets

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Question 89

In 2024, UK businesses are projected to spend over £26 billion on digital advertising and brand promotion. A significant portion of this expenditure is undertaken by firms operating in monopolistically competitive industries aiming to establish brand loyalty and differentiate their products.

Evaluate the view that government intervention and competition policy in monopolistically competitive markets are unnecessary, and that regulatory authorities should focus their resources entirely on correcting market failures in oligopolistic and monopolistic industries.

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1.8 The market mechanism, market failure and government intervention in markets Questions

  1. A Level
  2. /Economics
  3. /1.8 The market mechanism, market failure and government intervention in markets

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.

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