Which of the following best describes the distinction between complete market failure and partial market failure?
Complete market failure refers to the macroeconomic collapse of an entire economic system, whereas partial market failure refers to a microeconomic inefficiency in a single industry.
Complete market failure is characterised by government intervention that causes a net loss of economic welfare, whereas partial market failure occurs when the free market operates without any state intervention.
Complete market failure occurs when the market mechanism fails to establish a market for a good or service, whereas partial market failure occurs when a market exists but leads to an under- or over-allocation of resources.
Complete market failure occurs when price signals fail to clear a market, resulting in a temporary shortage, whereas partial market failure refers to long-term structural unemployment in an economy.
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.