Learning objectives
Define the mixed economic system and discuss the arguments for and against combining markets with government provision and regulation
Define maximum and minimum prices in product markets, draw and interpret the diagrams, and discuss their advantages and disadvantages
Define an indirect tax and a subsidy, draw and interpret diagrams showing their effect on price and quantity, and discuss their advantages and disadvantages
Explain regulation, direct provision of goods and services, nationalisation and privatisation, and discuss the advantages and disadvantages of each
Explain how a quota, for example a limit on the extraction of a natural resource, restricts the quantity produced, and discuss its advantages and disadvantages
Discuss which measure is most likely to correct a given market failure, weighing its cost and its unintended effects
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