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1.6 Market failure

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Question 6

A local authority has estimated the costs of one visit to each of four proposed leisure facilities.

FacilityPrivate cost (£)Social cost (£)
A3441
B2020
C1833
D1427

Using Table 1, for which facility does each visit cause the greatest cost to third parties?

[1]
A

Facility B

B

Facility D

C

Facility C

D

Facility A

Markscheme

1.6 Market failure Questions

  1. GCSE
  2. /Economics
  3. /1.6 Market failure

83 exam-style questions on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.

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