CIE A Level Topical Past Paper 2

7.3 Efficiency and market failure

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9708/42/F/M/23

The use of air travels leads to market failure caused by negative externalities.

With the help of a diagram, assess the extent  to which a government  can intervene to correct this market failure. [20]

9708/43/O/N/22 

Pareto optimality can only be achieved when an economy is both productively and allocatively efficient. This will create a more equitable society. 

b) Discuss the extent to which you agree with this statement. [13]

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a) Explain what is meant by dynamic efficiency and consider which type of market structure is most likely to achieve dynamic efficiency. [12] 

9708/41/M/J/22

a) Explain what economists mean by a public good and discuss why the provision of such a good is associated with market failure. [12] 

9708/42/M/J/21 

a) What is meant by ‘efficiency’ in relation to the use of resources? [12]