Why and how governments intervene in markets: Evaluating government intervention

Overview

Recall questions on Evaluating government intervention.

What you need to know

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Questions from this subtopic

Each one with the model answer underneath.

1. 1

   Give an example of Welsh government intervention to correct market failure in healthcare.

   Model answer

   Free NHS prescriptions in Wales, which improves access to healthcare.

2. 2

   How have charges for plastic bags in Wales been used to address market failure?

   Model answer

   By using the price mechanism to reduce negative externalities from plastic waste.

3. 3

   Where in Wales are average incomes typically lower compared to major cities?

   Model answer

   Parts of rural Wales and the South Wales Valleys have lower average incomes compared to cities such as Cardiff and Swansea.

4. 4

   When evaluating government intervention, what should be assessed regarding the policy's success?

   Model answer

   Whether the policy achieves its objective.

5. 5

   What unintended effects should be considered when evaluating government intervention?

   Model answer

   Any unintended consequences of the policy.

6. 6

   What comparison should be made when evaluating the overall worth of a government intervention?

   Model answer

   The costs versus benefits of the policy.

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