Which one of the following is most clearly an example of government failure?
The state-funded provision of primary education to counteract underconsumption.
The introduction of a guaranteed minimum price for agricultural produce that results in persistent surpluses and food wastage.
Levying a corrective tax on carbon emissions equal to the marginal external cost.
The creation of a public national park to resolve a free-rider problem.
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.