👑Government Policies and Interventions Essays

With the help of a diagram, assess the view that government intervention can be used successfully to correct market failure caused by positive externalities.

Analyse why a cut in government spending might increase poverty.

Nearly one million people in Cairo, the capital city of Egypt, live in crowded, unhealthy housing. One reason why people lack basic necessities, including adequate housing, is unemployment. In 2019, nearly 10% of Cairo’s workers did not have a job. Other citizens of Cairo live in luxury, in houses costing more than $1 million. Many of Cairo’s rich adults grew up in rich families

Discuss whether a government should provide subsidies to families to spend on housing.

Discuss how a government’s policies toward income and wealth distribution can affect a consumer’s demand.

Discuss whether increased government spending on a country’s infrastructure will always lead to a rise in the rate of inflation. Use aggregate demand and aggregate supply analysis to support your answer. [12]

In 2016, the Indonesian government increased its spending on healthcare and education and considered raising the school leaving age. The government also planned to increase taxation. Such a move might conflict with its aim of reducing unemployment at a time when a number of countries were at risk of entering a recession

Discuss whether or not a government should raise the school leaving age. [8]

In February 2016, share prices on stock exchanges fell throughout the world. There were a number of reasons for this; including concerns about the slowdown in world growth, the possibility of deflation and unemployment, and fears that some commercial banks could go out of business

Discuss whether or not government policy measures to reduce unemployment will cause inflation.

Swaziland is a small African country where six in ten people live in poverty and most firms are small and use little capital equipment. In October 2015 it opened a new airport. Some economists suggest that the building of the airport involved a high opportunity cost and caused a range of external costs. The building of the airport is part of the government’s plan to turn the country from a developing into a developed country

Discuss whether people would prefer to buy a product from a small firm or a large firm.

A free market economy operates to the benefit of both consumer and producer to achieve the most efficient outcome, and therefore there is no role for a government to play in controlling the market. Consider the extent to which this statement is correct. [25]

Explain the difference between fiscal policy and monetary policy. Show how each can be used to increase aggregate demand. [8]

Discuss two methods of increasing the provision of merit goods in a mixed economy. Consider which is more likely to be effective. [12]

Discuss whether or not parents should have to pay a fee to send their children to school.