CIE AS Topical Past Paper 2
Classification of goods and services
9708/21/M/J/24
a) With the use of examples, explain the difference between public goods and merit goods and consider whether markets will always provide enough of both goods. [8] [sample essay]
9708/23/O/N/23
a) Explain why the provision of bus and local rail (mass transit) services in cities is classified as a private good not a public good and consider why such services might only be provided by the private sector. [8] [sample essay]
9708/23/O/N/22
a) Explain why demerit goods are over-consumed and merit goods are under-consumed. [8] [sample essay]
9708/23/M/J/22
A government has decided to spend money building a new barrier to prevent flooding across a city.
a) Explain why this flood defense barrier is likely to meet the characteristics of a public good. [8]
b) Discuss why merit goods are provided by both the private sector and the public sector. [12]
9708/22/M/J/22
a) With the help of a production possibility curve diagram(s) compare growth in the productive capacity of an economy and growth that results from a reduction in the quantity of unused resources in an economy. Explain one reason that might cause each to occur. [8]
9708/21/M/J/22
When a planned economy introduces the price mechanism to allocate some resources, a mixed economy arises.
a) Explain, using examples, why merit goods are classified as private goods rather than public goods. [8]
9708/23/O/N/21
When a planned economy introduces the price mechanism to allocate some resources, a mixed economy arises.
b) Discuss the view that in a mixed economy the only role of government should be to provide public goods and the supply of merit goods should be left to the private sector. [12]
9708/22/M/J/21
In 2018 the UK government, concerned about the rise in obesity, particularly amongst young people, imposed a tax on producers of sugar-sweetened drinks.
a) State what is meant by a demerit good, and with the help of a diagram(s) explain how a tax on producers can improve the allocation of resources in the market for sugar-sweetened drinks. [8]
9708/21/M/J/21
In 2018 the UK government, concerned about the rise in obesity, particularly amongst young people, imposed a tax on producers of sugar-sweetened drinks.
a) Explain whether private goods, free goods and public goods will all be sold in a free market economy. [8]
9708/21/O/N/20
a) Explain, with the help of examples, how imperfect information among consumers affects their consumption of merit goods and demerit goods. [8]
9708/21/M/J/20
b) Discuss the view that the only goods a government should produce are public goods. [12]
9708/22/F/M/20
a) The government raises taxes to provide a toll road bridge and streetlights in a country. Explain how an economist would classify each of these provisions. [8]
9708/22/O/N/19
b) ‘Since the demand for a demerit good such as cigarettes is price inelastic, a tax on the product is a waste of time. What is needed is better awareness amongst consumers of the negative effects of smoking cigarettes.’ Discuss this view. [12]
9708/21/O/N/19
b) Discuss, with the use of examples, whether a government should directly provide certain goods and services in an economy. [12]
9708/23/M/J/19
a) Using examples, explain why merit goods are said to be under-consumed and demerit goods are over-consumed. [8]
b) Discuss whether merit goods should always be subsidised and demerit goods always taxed. [12]
9708/22/O/N/18
a) Explain the features of a public good. Consider whether a motorway (highway) provides an example of a public good. [8]
9708/23/O/N/18
a) Using sin examples, explain why some goods cannot be provided as private goods. [8]
9708/21/M/J/18
a) Explain why both merit goods and demerit goods are examples of private goods. [8]
b) Discuss whether merit goods and demerit goods are best provided by a market economy. [12]