(a)
- Draw a production possibility curve to illustrate the trade-off between educational and popular television programmes. Explain what may happen if the programme makers have more money because licence fees have risen. [3]
- Explain how an increase in the licence fee needed to receive television programmes may affect the market for television sets. [4]
(b)[4]
In what way does Fig. 1 support the view that the BBC creates more value than viewers pay?
(c)
- Comment on the relative positions of national defence and police services in Fig. 2. [3]
- Discuss whether including education and health as public goods in Fig. 2 is justified. [6]