Government Intervention and Failure (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is government failure?
What is government failure?
When govt intervention worsens allocation
Which mnemonic helps remember the four main causes of government failure?
Which mnemonic helps remember the four main causes of government failure?
DICE
Why does a sales tax impose a welfare cost on society even if revenue benefits citizens?
Why does a sales tax impose a welfare cost on society even if revenue benefits citizens?
Price distortion misallocates resources
How can rent controls create unintended consequences for vulnerable households?
How can rent controls create unintended consequences for vulnerable households?
Reduce supply leaving fewer housing options
When do excessive administrative costs cause government failure?
When do excessive administrative costs cause government failure?
When implementation costs exceed benefits
Why do information gaps create risk of government failure?
Why do information gaps create risk of government failure?
Policy may be based on outdated info
What must govts check to avoid government failure when implementing policies?
What must govts check to avoid government failure when implementing policies?
Marginal costs don't exceed benefits
What is the UK sugar tax rate for drinks with more than 8 grams of sugar per 100ml?
What is the UK sugar tax rate for drinks with more than 8 grams of sugar per 100ml?
24p per litre
How did UK sugar tax revenue estimates change from announcement to implementation?
How did UK sugar tax revenue estimates change from announcement to implementation?
Fell from 520 million USD to 240 million
What vital function do prices serve that govt intervention can disrupt?
What vital function do prices serve that govt intervention can disrupt?
Act as signals to guide resource use