Unit 2.7 · Role of Government in Microeconomics
Direct Provision and Regulation
AO2AO4
Syllabus Requirement
Government provision of services and regulatory legislation used to address market failures or promote access.
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
Direct provision and regulation are key methods by which governments intervene in microeconomics to address market failures. These interventions aim to ensure access to essential services and protect consumers, particularly in cases where the market alone may not achieve optimal outcomes.