Why does price mechanism fail?
In economic terms, market failure happens when there is inefficient distribution of goods and services leading to market inefficiencies. It is important that students understand the reasons why a market can fail. In order to do well, they also must be able to provide and come up with viable solutions to correct such a market failure, which often requires them to substantiate their points with graphical representations.
Economics Tuition: Assess the view that the Singapore government should use taxes rather than any other economic policies when dealing with the market failure associated with negative externalities
Assess the view that the Singapore government should use taxes rather than any other economic policies when dealing with the market failure associated with negative externalities.  Introduction Negative externalities are adverse effects imposed on third parties...read more
Smoking is considered a demerit good as it incurs negative externality which is the third party effect imposed on non-smokers or the society and this is seen in terms of the negative effects of passive smoking which will undermine the society from developing a healthy...read more