Consequences for Markets and Stakeholders
Role of Government in Microeconomics
AO3
Syllabus requirement
Evaluation of how interventions impact consumers, producers, government, and overall efficiency.
Assessment objectives
AO3 Synthesis and Evaluation
Summary
This topic explains how government interventions such as subsidies, direct provision and command-and-control regulation affect markets and stakeholders. It shows how subsidies shift supply, change prices and redistribute surplus, why governments directly provide public and merit goods to solve free-rider and under-provision problems, and how regulatory rules limit behaviour but can impose costs on firms and consumers.
