Student Report

Name: Saman Shahid

Question 3
1. A more structured and solid definition of economic efficiency and PPC needs to be
given.
2. Market failures are linked with allocative efficiency, not with a PPC.
3. The question explicitly asked about movement from within the PPC towards the PPC
which was not explained.
4. Only one criterion for Allocative efficiency was given which i.e. P=MC. However,
there are others such as MSB=MSC.
5. The diagram of market failure as a result of imperfect competition does not illustrate
the wastages in the market, but a restriction of supply in the market which causes a
deadweight loss to arise in the market.
6. Axis in the graphs not labelled.
7. At-least 2 market failures need to be explained (defined + Graph + Analyzed)
8. How government can fail in the market is also not explained.
9. Weak Evaluation.
KN + ANALYSIS = 6/14
EVAL = 3/6
Question 5
1. The question explicitly asked to use ‘Indifference Analysis’. But the candidate started
off with the equi-marginal principle.
2. Wrong definition of Indifference curves and no reference to budget lines given and no
attempt to establish the basic equilibrium (budget line tangent to Indifference Curve)
3. There are two types of Taxes: Direct and Indirect
With direct taxes → Impact is shown with the income consumption curve and will
vary according to the type of goods.
With indirect taxes → Impact is shown using the YE and SE.
4. Weak Evaluation
KN + ANALYSIS = 6/14
EVAL = 2/6