Description
Microeconomics is the branch of economics that deals with the behavior of individuals and firms in making decisions regarding the allocation of limited resources. It focuses on the analysis of small individual units of the economy, such as consumers, producers, and markets. This branch of economics helps us understand the decision-making process of individuals in choosing how to allocate their limited resources, and how firms respond to changes in demand and supply.
Book 3 of the AS Level Micro Economics 9708 course focuses on two key topics: market failure and government intervention. Market failure occurs when the market fails to allocate resources efficiently, which can result in a loss of welfare for society. Government intervention aims to correct market failure and ensure that resources are allocated efficiently.
The first part of Book 3 focuses on market failure. It explores the different types of market failure, such as externalities, public goods, and information asymmetry. The second part of Book 3 focuses on government intervention, and examines the different policies that governments can use to correct market failure, such as taxes, subsidies, regulations, and public provision.
As we explore these topics, we will learn about the theoretical concepts of microeconomics and their practical application. We will also study different case studies and real-world examples to understand how market failure and government intervention can impact the economy. Overall, this course will equip us with the knowledge and skills we need to analyze and understand the behavior of individuals and firms in the market, and the role of government in ensuring efficient allocation of resources.
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