Following reports of poor-quality online courses, an education regulator requires providers to publish completion rates and qualification results. Students ...

Assessment: Economics 9214 | Paper 1 Mock 01 | Written Paper 1 Subject: Economics - 9214

Question 1 Report

Following reports of poor-quality online courses, an education regulator requires providers to publish completion rates and qualification results. Students had previously found it difficult to compare the courses.

(a) Which form of market failure is the regulator trying to reduce? [1]
(b) State one item of information that students could use to compare providers. [1]
(c) Explain one likely benefit of the new requirement for consumers. [1]

Answer Details

(a) The regulator is seeking to reduce imperfect information, also called information failure. Students previously could not compare course quality easily. [1]

(b) A student could compare providers using a completion rate. [1] Qualification results, course prices, or employment outcomes are also acceptable.

(c) Publishing this information allows consumers to make better-informed choices and makes them less likely to buy a poor-quality course. [1]

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