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1.3 Market failure

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Question 13

A satellite-based orbital debris tracking network broadcasts open-access, real-time collision warnings to all active spacecraft. Economists classify this broadcast signal as a pure public good. Which of the following best explains this classification?

The tracking network is funded entirely by international public-sector grants rather than private aerospace consortia.

The signal is non-rivalrous in consumption, meaning one operator's retrieval of the warning does not reduce its availability to others, and it is non-excludable.

The high capital costs and risk of launching tracking satellites create massive barriers to entry, resulting in a natural monopoly.

The tracking system generates substantial positive spillover benefits for global telecommunications and satellite imaging firms.

1.3 Market failure Questions

  1. A Level
  2. /Economics
  3. /1.3 Market failure