(a)[5]
The article claims that higher saving would raise production. Would an economist necessarily accept this claim?
(b)[5]
Explain what is meant by market failure and assess whether there are examples of market failure in the article.
(c)[4]
Suggest why the article says that the lessons from the prisoners’ dilemma might be relevant.
(d)[6]
Discuss, with the help of the information, whether the article is right to claim that the ‘average person lives better than they did fifty years ago’.