Task C1:

Suppose that a government wanted to reduce the rent that its residents paid by introducing rent controls (a price ceiling on rent) into an otherwise competitive market for rental properties. Explain the outcomes that this might cause, and in particular which groups would win or lose from the policy.

Task C2:

For a market that is imperfectly competitive, it may be appropriate to apply the model of 'monopolistic competition' or a model of an 'oligopoly'. Discuss the key differences of these models and the circumstances in which they should be applied.

Task C3:

"The reason that inflation is a problem is because it makes the goods and services that people need to consume more expensive."

Discuss this statement, and consider other potential problems caused by inflation.

Task C4:

Discuss the pros and cons of using discretionary fiscal policy to combat a recession caused by an unexpected decrease in exports.