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8 marksMarket Failure

CAPE Economics Unit 1 · 2007 · Paper 2 · Question 4(a)

Discuss the concept of 'market failure' in relation to Pareto efficiency criteria.

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Other parts of this question

  1. 4(b)State four causes of market failure and explain how each leads to an inefficient market outcome in your country.[20 marks]
  2. 4(c)Discuss four measures implemented by your country's government to correct market failure and evaluate the effectiveness of two of them.[22 marks]

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