Suitable for 3.3 Year 13 Economics New Zealand

1. MARKET FAILURE AND GOVERNMENT INTERVENTIONS Allocative Efficiency and Market Failure

14. State Intervention MARKET FAILURE AND GOVERNMENT INTERVENTIONS

22. PRIVATE AND PUBLIC GOODS

29. Hospital High School Police Army Roads Bridges Medical Drugs University Dentist Visits Navy Air Force Cycle Helmets Cigarettes McDonalds Net Ball Courts Gambling Eye Examinations Seatbelts Cars with ASB breaks Snowboard Milk Recycling Plant Slippers Electric Blankets Alcohol Guns Cycle Ways Sports Stadiums Rubbish Collection Swimming Pools Park Street Lamp

32. Hospital High School Police Army Roads Bridges Medical Drugs University Dentist Visits Navy Air Force Cycle Helmets Cigarettes McDonalds Net Ball Courts Gambling Eye Examinations Seatbelts Cars with ASB breaks Snowboard Milk Recycling Plant Slippers Electric Blankets Alcohol Guns Cycle Ways Sports Stadiums Rubbish Collection Swimming Pools Park Street Lamp

34. PRODUCTION POSSIBILITIES CURVE Private goods Collective goods A B

36. CHARGING FOR A PUBLIC GOOD MB Charge Price Welfare lost through charging for public good. Capacity of the public good Quantity

38. TAX S D Quantity (000) Price ($) 0 10 20 30 40 50 70 80 60 10 20 30 40 50 S’

39. SUBSIDY S D Price ($) 0 10 20 30 40 50 70 80 60 10 20 30 40 50 Quantity (000) S’