Question: Explain the “market failure” approach to determining the role of the public sector. Explain how this approach can be applied to some examples drawn from your work experience or the academic literature.
Demonstrate YOUR understanding:
-The marker is trying to work out whether you understand the topic set in the question.
-Answer the question set.
-Prepare by reading multiple writers quickly about the subject, become a bit of an expert.
-Explain things in your own way – make the logic clear.
-If you don’t understand something, more work is required.
-Don’t try to escape from your lack of understanding by using a quote you don’t understand to explain something.
Sections of the essay:
-Introduction: There are usually many different ways to answer a question. Explain briefly how you are answering and why that is appropriate. Keep brief – return to the introduction to improve it when you have done the rest of the essay.
-Sections: if there are say two parts to the essay, have two sub headings for these parts
-Conclusion: Briefly make the most important one or two points
-References: Do a good job on this, Harvard style
Explain very briefly how the market works to produce optimal outcomes.
Fundamental role of government, law, order, national defense (just mention, do not go deep).
Further roles of government resulting from market failure, such as Stabilization, Redistribution, Allocation(mention in a sentence, do not go deep)
Mainly focus: Monopoly, Externality, Public goods, Information failure.(choose one of these headings with couples of examples, or two of these headings with one example each.)
Academic article that might be used.