Economics 9708 · AS & A Level · 7.4

7.4 — practice question

(a)[2]

Define economic sustainability and give one example, taken from the information, of a change that could be used to illustrate it.

(b)[4]

Use the information to comment on the likely effects on the economies of the countries that chose not to sign the carbon policy agreement.

(c)[4]

Discuss why the article describes China as ‘a country of contradictions’.

(d)[10]

With the aid of a marginal social cost and benefit diagram, discuss whether continued use of coal to produce electricity makes it less likely that allocative efficiency will be achieved.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Definition: Economic sustainability means economic activity today that does not reduce future generations’ ability to meet their needs.

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