Free state provision and a producer subsidy could both increase consumption of vaccinations. Which comparison is most accurate?
State provision has no cost, while a subsidy always reduces supply
A subsidy guarantees equal access, while state provision cannot
Neither policy can create an opportunity cost
The better policy depends on their costs, how much extra uptake they cause and whether remaining information barriers are addressed
31 exam-style questions on OCR GCSE Economics 3.8 Limitations of markets, covering 3.8.1 Positive and negative externalities, 3.8.2 Policies to correct externalities, 3.8.3 Impact of externality policies, and 3.8.4 Costs and benefits of externality policies. Each one has a worked solution and a mark scheme showing where the marks go.