Home › IGCSE Economics › Chapter 6
IGCSE · Economics · Chapter 6
Ch 6 The Market Economic System and Market Failure: complete notes
Neat, exam-ready notebook-style notes for Ch 6 The Market Economic System and Market Failure, following the Cambridge IGCSE 0455 syllabus. This chapter is part of the complete IGCSE Economics 0455 Complete Notes: All 22 Chapters with Diagrams and Mark Schemes (Cambridge 2027–2029).
Free preview: Ch 6 The Market Economic System and Market Failure notes
A quick look at the chapter from our IGCSE Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- 2.8.1 Definition
- How the price mechanism answers the three questions
- 2.8.2 Advantages and disadvantages of the market economic system
- 2.9.1 Definition
- 2.9.2 Key definitions
- 2.9.3 Causes of market failure
- 2.9.4 Consequences of market failure: misallocation of resources
“I can” checklist: what you must be able to do
- define the market economic system and explain how the price mechanism answers the three basic questions
- give and explain advantages and disadvantages of the market system
- define market failure
- define public, merit and demerit goods, with correct examples
- define private, external and social costs and benefits, and calculate them
- define monopoly
- explain each cause of market failure, including the free-rider problem
- explain the consequences: over-consumption, under-consumption, non-provision, restricted supply and higher prices
What is inside the full chapter notes
- Concept notes, price-mechanism and cost/benefit diagrams, 8 worked examples (calculations and model answers)
- Exam skills for Paper 2; common mistakes from the examiner report
- 20 Paper 1 style multiple-choice questions, explained
- One Section A data-response question and two Section B questions (Paper 2 style), all with full mark schemes
- Quick-reference table, "I can" checklist
What you get in the pack
- All 22 chapters of the Cambridge IGCSE Economics 0455 syllabus (exams 2027–2029): the basic economic problem, demand and supply, elasticity, market failure, money and banking, workers, firms and markets, government policy, growth, unemployment, inflation, development, international trade, exchange rates and the balance of payments
- Every syllabus statement covered in order, with clear notes and economics diagrams drawn for these notes
- Worked examples (calculations and model answers), exam skills and key definitions in every chapter
- Common mistakes taken from Cambridge examiner reports, so you know where marks are lost
- 20 Paper 1 style MCQs per chapter with answers and explanations
- Original exam-style questions in the style of Paper 1 (multiple choice) and Paper 2 (structured questions), with full mark schemes (no past-paper reprints)
- Quick-reference sheet and an "I can" checklist at the end of every chapter
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes; not endorsed by or affiliated with Cambridge University Press & Assessment
All chapters in this pack
- Ch 1 The Basic Economic Problem
- Ch 2 Markets, Demand and Supply
- Ch 3 Price Determination and Price Changes
- Ch 4 Price Elasticity of Demand
- Ch 5 Price Elasticity of Supply
- Ch 6 The Market Economic System and Market Failure
- Ch 7 The Mixed Economic System
- Ch 8 Money, Banking and Households
- Ch 9 Workers
- Ch 10 Firms and Production
- Ch 11 Firms' Costs, Revenue and Objectives
- Ch 12 Types of Markets
- Ch 13 Government Intervention and Fiscal Policy
- Ch 14 Monetary Policy and Supply-side Policy
- Ch 15 Economic Growth
- Ch 16 Employment and Unemployment
- Ch 17 Inflation and Deflation
- Ch 18 Living Standards and Poverty
- Ch 19 Population and Economic Development
- Ch 20 Specialisation, Free Trade and Globalisation
- Ch 21 Foreign Exchange Rates
- Ch 22 The Current Account of the Balance of Payments