An economy experiencing high levels of occupational and geographical labour immobility is likely to suffer from market failure because
structural shifts in economic demand lead to persistent structural unemployment and underutilized productive capacity.
state-funded retraining schemes to resolve labor market friction are classified as pure public goods.
the central bank's monetary policy framework fails to account for regional wage differences.
the inability of workers to relocate represents a negative externality associated with merit good consumption.
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.