Which of the following situations illustrates a market failure originating specifically from an information gap?
A chemical refinery discharging sulfur dioxide into the atmosphere, causing respiratory issues for nearby residents
A commuter refusing to pay for street lighting on their route home, hoping that other residents will fund its installation
A consumer purchasing fewer organic vegetables because they cannot verify or fully appreciate the long-term health and nutritional advantages compared to conventional produce
A major telecommunications provider restricting broadband infrastructure in rural areas to maximize its corporate profit margin
15 exam-style questions on Edexcel A A Level Economics 1.3.4 Information gaps. Each one has a worked solution and a mark scheme showing where the marks go.