Assess the view that the increasing scarcity of sand is a problem best solved by market forces, rather than through government intervention

1 min read

Assess the view that the increasing scarcity of sand is a problem best solved by market forces, rather than through government intervention.

Model Answer for 25 Mark Question from AQA A-Level Economics Paper 1 June 2019

Plan

  • Intro:
  • Paragraph 1: NO - government intervention is needed
    • the market ignores externalities
    • government intervention can resolve this
    • example: indirect tax
  • Paragraph 2: YES - leave it to the market
    • no risk of government failure
    • price mechanism
  • Conclusion: risk of government failure, size of market failure