Can the problem of poverty in the UK be solved through the operation of market forces?

1 min read

To what extent can the problem of poverty in the UK be solved through the operation of market forces? Justify your answer. (June 2017)

Plan

  • Intro - define absolute poverty and relative poverty
  • P1 -
    • market forces are not able to solve absolute poverty
    • market forces also lead to market failure e.g. under-provision of housing/ healthcare
    • state provision of some services are required
  • Eval - opportunity cost and source of government failure
  • P2 -
    • market forces create wage gaps
    • banker vs retail
    • Laffer curve shows that high tax rates are ineffective
    • minimum wages creates more unemployment
  • Eval - monopsony employers take advantage of workers
1 min read

Evaluate the view that government regulation of monopolistically competitive markets is unnecessary, and that polices to encourage competition and prevent the abuse of monopoly power should focus entirely on oligopolies and monopolies

Evaluate the view that government regulation of monopolistically competitive markets is unnecessary, and that polices to encourage competition and prevent the abuse of monopoly power should focus entirely on oligopolies and monopolies. (June