1. (a) What market failures are encountered in providing health insurance? What effect do they have?

(10 marks)

1. (b)Why would knowledge of moral hazard be of benefit to a banking regulator? How could the situation beimproved?

(10 marks)

1. (c)The regulation of natural monopoly involves three interrelated strands: pricing, access and quality of service. Explain the main economic elements of eachstrand.

(40 marks)

1. (d)You have been asked to explain to the Minister the advantages and disadvantages of regulating psychologists. Using the material you have encountered on this course, prepare a brief report for theMinister

(40marks)