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A-Level The Microeconomic Goals of Government

What the A-Level syllabus expects for The Microeconomic Goals of Government, and how to practise it.

What the syllabus expects

The microeconomic aims that governments hold are efficiency and equity.
A market is efficient at the social optimum, the point where Marginal Social Benefit (MSB) equals Marginal Social Cost (MSC) and society's welfare is greatest.
When the social optimum is missed, deadweight loss appears, representing the fall in society's net benefit whenever output departs from the social optimum.
Allocating resources efficiently need not deliver an equitable result.
Equity exists when essential goods and services are shared out fairly.
Scope: Inequity is treated as a distributional matter rather than as a market failure.