Economics 9708 · AS & A Level · 1.6

1.6 — practice question

(a)[8]

Explain how private goods differ from public goods, and why a business can earn a profit from supplying private goods but not from supplying a public good.

(b)[12]

Discuss the argument that a market economy is always better than a planned economy because of the price mechanism.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge of how private and public goods differ in terms of excludability, rejectability and non-rivalry in consumption.” …

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