Examples

Question 1

Market and gov failure

Answer 1

2024
Water companies found dumping raw sewage
More than doubled in 2023 from 2022
Envrionment agenccy critical
Polluters increased fines- hypothecated into new water restoration fund aims to imrpove water quality
Water uk insurty body said double spending to payf for upgrades and cut sewage dischardges

Question 2

Gambling related legislation

Answer 2

Gambling operators must have gambling commison licence to trasavt with and advertise
Restrictions on gambling - eg be at strong appeal to children, no one can lok under 25 and play signif role in advert, linked to enhanced attractiveness
Current white paper on thresholds of losses eg 1k in 24h

Question 3

Childcare

Answer 3

Merit good enables women to work
Subsidised by gov- expensive and not give enough to runinfo failure

Question 4

Dentistry

Answer 4

Not fully free- children is
Nhs charge bands- eg tests band one, filing band 2
Underprovided merit good
Waiting lists

Question 5

Carbon taxt

Answer 5

2022 uruguay highest carbon tax at 137 dollars- developing- trying to turn implicit cost into explicit cost to reflect neg externalities
Australia- carbon tax failed- 2011- after one year saw 1.4% greenhouse gas emissions reuction secon year but also increased av price electricity family 10% adn busness 30% increase

Question 6

Windfall tax

Answer 6

May 2022 uk - 25% energy profits levy
Hunt increased windfall tax 35% jan 2023
2022-23 recied 2.6bn
But can claim tax beneifts if decarbonise way extract oil and gas, or even if invest oil and gas extraction
Yet windfall according to ithica energy said slowed own investment in oildielf because of instability caused winfall tax

Question 7

Firms that closed under covid

Question 8

Policies to mitigate market failure iwth gambling

Answer 8

Choice arcitestch- scratch cards away counter
Advert restrictions
Caps on spending

Question 9

Companies that closed due to covid

Answer 9

Debenhams
Peacocks
Mothercare

Question 10

Regional pay gap

Answer 10

N deindusrtialied less skilled, construction, retail, automotive industry (although highly mechanised), engineering- aerornauticals automotive or defence engineernig- sunderland v london
S esp london high value added with lawyers and bankers

Question 11

How to intervene to increase demand physical stores

Answer 11

Subsiy- draw diagram and cost
Tax on online sales- sow tax burden and revenue
Postieve externalities these physical shops bring
Support infrastructure-e cheaper parking to encourage going to town, lower bus rates

Need to do a cost benefit analysis to determine whether to help store-s intervention would need to be equitabelsso as to not distort the makrets

Question 12

Water industry in uk

Answer 12

Scot- nat scottish water
Eng and wales regional water monopoles- given out 78bn dividens- half of what spent on infrasturcture between 1991-2023

Question 13

Example of failed privatisation

Answer 13

Thames water privatised in 1989
Privatised debt free now more than 16bn debt
Critic pay large dividens to shareholders
Record on sewage dischardges is increasingly under attack

Question 14

Arguments in favour of taking uk water industry into state ownership

Answer 14

Social equality- benefits generated more evenly distributed0 control of prices, greater allocative effciiency
Fund of infrasturcture public good- non rival

Question 15

Why should keep water industries private

Answer 15

Incentives to operate efficiently and innovate proifits can be reinvested in water and sewage system
Private firms can be and are regulated to balance interests of stakeholders such as consumers environ and investers
Withot discipline of market forces, nat industries may allocate resources inefficiently, lead overstaff or under utilisation of asstes, reflected in loss productive effeicieny, nat idnustreis in past made heavy losses- borne by tacxpayers

Question 16

Sugar tax sucess

Answer 16

Raised 334 mill in rev 2021-22
Resulted in 8% relative reducetion in obesity levels in year 6 grils- over 5,000 cases of obesity per year in this group alone

Question 17

Nudge unit actions

Answer 17

Covid- suggestion of siinging happy birthday to ensure hands are washed for 20s
Default in automatic enrolment for penisons- 10 mill peple now enrolled in pensions as a result
Aka behavoural insights team

Question 18

Banking monopoly managed

Answer 18

Tsb split from lloysa as a condition of the state aid recieved from teh uk gov and eurpoean commission

Question 19

Ulez sucess

Answer 19

Nearly 80,000 fewer driving in london between june-oct 2023
56% increase in vehicles meeting the standard snic 2017
Resulted in 21% reduction in nitrogen dioxide conc in inner london