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

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Question 33

Which one of the following is most likely to be a cause of government failure rather than market failure?

A

The under-provision of public parks because of the free-rider problem

B

High administrative costs of implementing a new congestion charge that exceed the environmental benefits

C

The over-consumption of sugary drinks due to a lack of consumer information about long-term health risks

D

The exploitation of open-access forestry resources due to a lack of property rights

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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