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1.3 Market failure

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Question 22

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

1.3 Market failure Questions

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