CIE A Level Topical Past Paper 2
7.4 Private costs & benefits, externalities and social costs & benefits
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
a) Consider why it is important for a government to use cost benefit analysis when deciding how much of a public good to provide. [12]
9708/42/O/N/22
a) Using diagrams, explain with examples the meaning of a positive externality for a consumer and a negative externality for a producer. [12]
b) Discuss the extent to which positive externalities and negative externalities explain all forms of market failure. [13]
9708/41/O/N/22
Explain what is meant by cost benefit analysis and consider how it might be used by a government to decide whether a new hospital should be built. [25]
9708/42/M/J/22
a) Explain how the problems of climate change, such as global warming, may be regarded as a consequence of resource misallocation. [12]