A government-backed 'Green Homes Grant' pays local contractors to install energy-efficient heat pumps. The scheme pays out the full grant based solely on the contractor's self-submitted photographs of completed work, without any physical site inspections.
Which economic concept explains why this specific design is highly vulnerable to market failure?
asymmetric information
positive externalities
the free-rider problem
public goods
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.