Economics A-Level
Market distortion
What Market distortion means in Economics A-Level, as defined for AQA.
Definition of Market distortion
Check what you remember
Read the wording for your board, then hide it and explain Market distortion in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Any interference in the price mechanism that prevents the efficient allocation of resources.
Topics that use Market distortion
- Government failure (AQA A-Level)
Related terms
- Administrative costs
- Conflicting objectives
- Cost-benefit analysis
- Economic welfare
- Government failure
- Inadequate information
- Market versus government
- Price mechanism
Using Market distortion in the exam
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