NZQA registered unit standard
8416 version 5
Page 1 of 2
Title
Investigate market failure and evaluate corrective mechanisms
Level
5
Credits
2
Purpose
People credited with this unit standard are able to: describe the
causes and analyse the consequences of, and evaluate
mechanisms which aim to correct, market failure.
Classification
Economic Theory and Practice > Micro Economics
Available grade
Achieved
Explanatory notes
1
Coasian bargaining suggests that externality generated market failure can be
corrected by a process of free bargaining between the parties involved, without the
need for government intervention. Coase, Ronald H. 'The Problem of Social Cost'
(1960) vol 3, no 1, Journal of Law and Economics, 1-44.
2
Legislation relevant to this unit standard includes but is not limited to:
Resource Management Act 1991.
Outcomes and evidence requirements
Outcome 1
Describe the causes and analyse the consequences of market failure.
Evidence requirements
1.1
The description establishes situations which lead to market failure.
Range
1.2
situations of market failure may include but are not limited to –
three of – externalities (positive and negative), public goods,
resource depletion, imperfect competition.
The analysis establishes the consequences of market failure.
Range
consequences may include but are not limited to – two of –
changes to price and output, allocative inefficiency, resource
depletion, free riders.
Outcome 2
Evaluate mechanisms which aim to correct market failure.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
8416 version 5
Page 2 of 2
Evidence requirements
2.1
The evaluation identifies mechanisms to correct market failure in terms of their
effectiveness and practical application.
mechanism – two of – Coasian bargaining; environmental controls;
subsidy; tax; Resource Management Act 1991; international
protocols, treaties, and conventions.
Range
Planned review date
31 December 2019
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
29 October 1996
31 December 2016
Revision
2
21 July 1999
31 December 2016
Revision
3
14 September 2005
31 December 2016
Review
4
16 October 2009
31 December 2016
Rollover and
Revision
5
16 April 2015
N/A
Consent and Moderation Requirements (CMR) reference
0116
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
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before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016