Explain why demerit goods are an example of market failure.
Evaluate the effectiveness of using indirect taxation to correct market failure.
Explain the view that an increase in price will lead to an increase in the quantity supplied whilst an increase in supply will lead to a decrease in price.
To what extent are subsidies the most effective way of encouraging the consumption of merit goods?
Explain three factors that could lead to an increase in demand for cigarettes.
Discuss three policies a government might use to reduce the consumption of a demerit good such as cigarettes.
Explain how changes in price work to reallocate resources in a market.
Discuss the view that the overuse of common access resources is best addressed by government.
Microeconomics
Explain why merit goods tend to be under-provided in a free market.
Evaluate the use of carbon taxes to reduce threats to sustainability.
Explain one supply factor and one demand factor that might lead to a rise in the price of rented housing.
Discuss the view that price controls imposed by governments on the market for rented housing should never be used.
Explain why governments provide subsidies for some goods and services.
Discuss the consequences of providing a subsidy for goods such as agricultural products.
Distinguish between the concepts of income elasticity of demand (YED) and cross price elasticity of demand (XED).
To what extent might the concepts of YED and XED be of significance for business organizations?
Microeconomics
Explain why firms in oligopolistic markets may prefer to use non-price competition.
Discuss the reasons why firms compete or collude in oligopolistic markets.
Using a diagram, explain why firms in monopolistic competition are neither allocatively nor productively efficient.
Examine the view that the market for food is more beneficial to consumers if dominated by a monopoly retailer (supermarket) rather than by a large number of small shops operating under monopolistic competition.