(a)[8]
Using a diagram, explain why some goods are produced in quantities that are greater than is socially desirable.
(b)[12]
Discuss whether national defence or a public park is the stronger example of a public good.
Economics 9708 · AS & A Level · 7.4
7.4 — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Understanding that negative externalities and demerit goods can lead to overproduction, because external costs are not included in the market outcome and demerit goods are demanded when information is lacking” …
- Full mark scheme, point by point
- Step-by-step worked solution
- Write your answer & get it marked instantly by AI