Chapter 9 - Government Intervention

Y12 Economics - Period 3-4

I hope you are able to concentrate on these tasks and can work on them in groups. I would have review the activity in two parts as a whole class activity. You can do this on the white board if you wish

It is important that you are able to work while we have the disruptions to school caused by the weather. The request for examples is vital as they provide your analysis with reality and permits judgements to be made more clearly.


Learn the three main reasons for Government Intervention

- Market Failure
- Wealth Distribution
- Economic Performance

For each reasons identify the rationale/justification for Government intervention. You must use examples, contrasting if possible, explain each, (to prove you understand)

Try to keep the economics and the politics separare. Explaining the points of view of different political options could be one way of tackling this. Remember that mainstream political opinion (Conservative/Liberal/Labour) tend to want similar things, increased wealth, welfare and national security, but see different ways to do this.

Learn three ways that Government might Intervene

- Legislation
- Financial
- Regulation

For each way, identify the methods the interventions work. This will involve diagrams for the first method.

Ensure that you descibe each method with appropriate examples.