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1.8 The market mechanism, market failure and government intervention in markets

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Question 44

Which of the following scenarios best illustrates the transition of an asset from a pure public good to a quasi-public good?

A

A municipal authority installs electronic toll gantries on an open-access highway, preventing motorists without a registered transponder from using the road.

B

A pristine public beach, which is free and open to all, becomes so overcrowded during a heatwave that visitors struggle to find space to sit.

C

A regional utility provider transitions from carbon-intensive coal-fired power stations to wind turbines to supply electricity to the national grid.

D

A pay-to-view satellite television broadcaster removes its subscription paywall, allowing anyone with a receiver to access its channels for free.

Markscheme

1.8 The market mechanism, market failure and government intervention in markets Questions

  1. A Level
  2. /Economics
  3. /1.8 The market mechanism, market failure and government intervention in markets

378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.

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