It is more desirable for the market to find their own

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solution. It is more desirable for the market to find their own solution to this as it will reduce the strain on government resources that would be involved in the enforcement and monitoring of this laws.
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(b) Discuss the view that government intervention to correct the above market failure is always desirable. [15] Conclusion (pointers to think about) Take a stand: Is govt intervention always desirable? Criteria to consider: - Does the intervention bring about a socially desired outcome? - Can the intervention be easily achieved? Will the results only be seen in the long term? - Will there be cases where the market may already have the incentive to implement solutions to narrow the information gap, in which case govt intervention may not even be necessary? Note: depending on what examples the students wrote in part (a), the policies chosen may differ from the suggested ones in part (b)
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(b) Discuss the view that government intervention to correct the above market failure is always desirable. [15] Impt Note to students: Parts (a) and (b) are linked. The implication is that if you want your essay to flow smoothly, choose policies in part (b) to address the sources of information failure that you have already explained in part (a). <this will help your time management: we have gone through during prelim that if you chose random examples in part (b), you will have to explain the new problems first before explaining how the govt intervenes – not achievable in 20-25 mins if you aim to also cover a wide breadth of policies to tackle the different types of info failure> Bear in mind that in this essay, you should also consider having a wider scope of discussion. Therefore, in choosing examples, you may want to consider explaining a case (e.g. imperfect info) that leads to over-consumption and a case (e.g. adverse selection) that leads to under-consumption. In other words, pls PLAN BEFORE YOU WRITE!!
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(b) Discuss the view that government intervention to correct the above market failure is always desirable. [15]
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