From the stand of the government, the policies to provide healthcare to society are i) to encourage consumption of healthcare so that the socially optimal level of consumption can be achieved. ii) Overcome the information failures linked to merit goods like healthcare and iii) on grounds of equity as the government believe that consumption should […]
Market failure is the failure of markets to achieve allocative efficiency. The market failure in healthcare industry is caused by several factors like the failure to take into account positive externalities (the external benefits occur when third parties benefit from the consumption/provision of the service), consumers not being the best judge of their own welfare
Explain the market failure in the healthcare industry. Read More »
Introduction Monopolistic competition is a market structure where there are many firms selling a differentiated product and entry barriers are low. This structure gives rise to particular firm behaviour and performance. The behaviour of a firm pertains to price and output determination, manner of competition and tendency to engage in R&D. The performance of a
Introduction Singapore has a small population of about 5 million people as well as a small geographical area of only 704 km sq. This disadvantaged her in terms of the availability of resources and size of domestic market. Due to these constraints, the Singapore economy has to be open which means that the country is
Synopsis: Students are expected to provide detailed illustration of how various protectionistic measures, such as tariff and quota, can be implemented by developed countries to correct the BOP deficit. Adequate limitations of such measures in correcting BOP deficit must be discussed, especially the issue of loss of CA by developed nations. Students are to provide
1) Explain causes of falling interest rates and rising labour productivity briefly Falling interest rates: Since the MAS targets Singapore’s exchange rate as their primary monetary policy tool, they give up control over the interest rate. Two things affect the interest rate in Singapore which has a very open economy with a well-developed financial system:
Introduction exploiting consumers Thesis: Monopolies exploit consumers, and hence should be disallowed. Antithesis: Monopolies can actually bring benefits to consumers, and should be allowed to persist. Synthesis:
Introduction (i) reduce the consumption of casino gambling (ii) improve inequality in the distribution of income Body
Explain why government intervention is advocated in the market for casinos. Read More »
Intro: Recognize that there are some similarities and differences between how exchange rates are determined in both Singapore and USA. The similarities can be broadly classified as the similar impacts that the free market mechanism has on both exchange rates and the key difference is the different exchange rate systems for both countries. Body: Similarities:
Compare how exchange rates are determined in Singapore and USA. Read More »
Introduction Market failure occurs when the operation of the market fails to achieve economic efficiency in the allocation of scarce resources i.e. it is possible to change the existing resource allocation to make someone better off without making someone else worse off. There are a few causes of market failure including market dominance and imperfect
Explain how market dominance and imperfect information can lead to market failure. Read More »
