Government and Market failure

Grade 10B_IGCSE

" Discuss whether government intervention is always successful in correcting market failure."

Time Duration for submitting the Article is 

 Aug  5th to August 11th, 2013 

 Write your answer here in 500 Words. 

"Marks allocation will be in accordance to the Rubrics"

For rubrics please check in 

'Food for thought column on my bog under title Rubrics'

Government Intervention in the Market

TOPIC: FOR GRADE 12B A2

Analyse what might be done when market failure does exist.

Time Duration for submitting the Article is 

April 1 to 7,  2013 

Name                                        Reasons

Wilson:                                    Public goods

Alyssia:                                   Merit Goods

Fernando:                               Demerit Goods

Alex:                                         Market Imperfections

Bella:                                        Information failure 

Write your opinion here in 500 Words. [20 Marks]

"Marks allocation will be in accordance to the Rubrics"

Note: I will give zero if your writing are not in accordance to the rubrics mentioned by me.

Guardian: Carbon tax could boost economy and combat fuel poverty, analysis shows: 

1) Define carbon tax. [3] 
2) Analyse the reasons stated in the favour of Carbon tax. [9] 
3) On the basis of you knowledge of economics, Discuss how this carbon tax will effect the life of a common man in Europe.[15]

BBC: Argentina 'freezes Chevron assets' over Ecuador damage. 

1) Define market failure. [3] 

2) Explain the possible reasons of market failure in an economy. [6]. 

3) Critically analyse the role of government in case of market failures.[10]

BBC: Anti-austerity backlash hits Portugal in euro crisis. 

Strikes are the right of trade union to show the disapproval with the policy. What do you think strike should be allowed? Discuss [10]

London Midland driver shortage hits 37 trains

Why the train services effected in London? who is responsible. Who is to blame? [10]

Why market fails?

Failure of Airline

1) Explain market failure.[3] 
2) Does evidence suggest that promoter are responsible for the failure of airlines. [6] 
3) Evaluate the impact of failure of air line on Indian economy. [8] 
4) Discuss the role of government in above mentioned case of market failure.[15] 

Click on any question to read the article.

Seven detained over China river cadmium spill

1) Explain market failure. [3] 
2) State the reasons of market failure applicable in above mentioned case study.[5] 
3) Discuss how the problem of market failure can be solved in an economy.[8]

Thomas Cook shares dive 75% on news of bank talks

1) Define the short run.[3] 
2) Explain the reasons for the fall in the market value of Thomas Cook.[5] 
3) Discuss the relationship between the share value and health of the firm.[8] 
4) Analyse the reason for failure of the world renown travel company and suggest the solutions to the board of directors.[12] 
5) Apply your knowledge of theories of production and explanation of conditions of the travel firm.[15] 
6) Discuss the possibility of Govt intervention in protecting the firm from bankruptcy. [15]

Hunger pains: famine in the Horn of Africa

1) Define Poverty.[3] 
2) Explain the reason for the rise in the prices of food grains.[6] 
3) Analyze why the school Enrollment rate is very low in the parts of Somalia.[8] 
4) Is there is sufficient evidence to prove the theory of Dr. Amartya Sen. [10] 
5) Do you think Government is responsible for all this catastrophic situation.Discuss. [12]