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Card 1 of 22

Why must a government identify the type of market failure before choosing a policy?

A

All market failures can be solved by the same policy, provided it is applied strongly enough.

B

Different failures require different tools, and effectiveness depends on how producers and consumers respond.

C

The government must identify the type of market failure to calculate the market equilibrium price.

D

The government must identify the type of market failure because taxation is always the most effective solution.

Card 1 of 22

8.1.1 application and effectiveness of measures to tackle different forms of market failure Flashcards

  1. Intl A Level
  2. /Economics
  3. /8.1.1 application and effectiveness of measures to tackle different forms of market failure

22 flashcards on CIE Intl A Level Economics 8.1.1 application and effectiveness of measures to tackle different forms of market failure: the key terms and definitions you need to recall.

Flashcards