The objective of the assignment is to analyse an economic policy issue within a specific sector of the economy. The focus should be on recognising and addressing potential sources of market failure in the chosen sector. Students should use well-established economic arguments (when developing, defending or criticising a policy position) and follow the process outlined below:
• Choose an industry sector (e.g. real estate) and a specific economic policy issue that could lead to market failure within that sector.
• Write an essay of about 3000 words evaluating the role and scope of alternative government intervention(s) to address the market failure. You should also identify any unintended consequences and distortionary effects of such interventions for the economy.
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