Including income, the rate of interest and confidence between different households and over time. Questions with suggested solutions

PPT covering: 8.1 Government policies to achieve efficient resource allocation and correct market failure continued 8.1.2 government failure in microeconomic intervention: • definition of government failure • causes of government failure • consequences of government failure 8.2 Equity and redistribution of income and wealth 8.2.1 difference between equity and equality 8.2.2 difference between equity and efficiency 8.2.3 distinction between absolute poverty and relative poverty 8.2.4 the poverty trap 8.2.5 policies towards equity and equality, for example: • negative income tax • universal benefits and means-tested benefits • universal basic income Links to relevant videos

The difference between absolute and relative poverty. The causes of poverty including unemployment, low wages, illness and age. Policies including those promoting economic growth, improved education, more generous state benefits, progressive taxation, and national minimum wage. Questions and suggested answers

The difference between microeconomics and macroeconomics and the decision makers involved in each.

PPT aligned to the CIE syllabus. Summative and formative assessments provided with suggested solutions. Topics covered included division of labour, absolute advantage, comparative advantage, microeconomics, macroeconomics, normative statement, positive statement etc