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    Anyone know any good data about the current state of economy to put in??
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    (Original post by rosemondtan)
    Guys how do you explain adverse selection and moral hazards?
    what is that? are you sure its AQA spec???
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    Went through all topics but not 100% on government failure.
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    (Original post by Marisolox)
    Went through all topics but not 100% on government failure.

    admin costs (the costs of implementing may have to be covered through taxes- inequitable), inadequate information, asymmetric info- firms no more than gov or second hand car owner no mores than us about car. Unintended causes e.g recession. Thats kinds the jist of it
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    I'm completely f****d. What would recommend to focus on tonight so I can at least pass.
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    ANY PREDICTIONS PLEASE


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    Please can someone give a quick rundown of government failure, you will be ma best mate for life x
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    Hey, basically Governments intervene in a market when there is a market failure, whether that be monopolies or missing markets. Government failure then occurred when the government intervention makes the problem worse. They can include distortion of price signals(in the price mechanism) for example a government could subsidise a industry which is failing or has few prospects, that firm then relies on the subsidy. Another example could need was administrative costs as the social benefits of a policy may not be worth the financial cost of admistering the policy. You can also have unintended consequences and information gaps

    I hope that helps!!!
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    I have a feeling that taxes may come up, maybe the definition for indirect and then a diagram, and one of the 25 markers is to do with Government intervention
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    Good sources to evaluate government failure market failure etc. Any own knowledge I should be aware of?
    AQA resit exam
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    (Original post by grfsbsv)
    Good sources to evaluate government failure market failure etc. Any own knowledge I should be aware of?
    AQA resit exam
    By sources do you mean like relevant examples?
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    OMG only two hours left until my first as level exam 😁😁😁
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    (Original post by theD0N)
    OMG only two hours left until my first as level exam 😁😁😁
    Omg stop! 😂😂

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    1 hour 40 min to go! 0.0
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    Good Luck Everyone!!!
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    Good luck guys! I'm sure you'll smash the exam

    (Original post by elllbabe)
    Please can someone give a quick rundown of government failure, you will be ma best mate for life x
    Government failure occurs when government intervention to correct market failure does not improve (and may worsen) the allocation of resources.

    Causes of Government Failure include:

    Political self-interest - the need to win an election overriding other, more rational considerations

    Asymmetric Information - governments can fail to have enough information on how to tackle the market failure which can lead to actions that worsen the situation

    Unintended Consequences - "Unknown Unknowns" from government action that worsens market failure. The creation of black markets when a minimum price is enforced is one example

    Regulatory Capture - An institution that is meant to look after the public interest becomes influenced by the companies they're meant to be regulating
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    Omg guys good luck!


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    Good Luck Guys!!!

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    Who else chose context 1?
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    context 1 yah, omggg hated the multiple choice and barely attempted the essay cos had no time
 
 
 
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