(a)[2]
Define the term social benefit.
(b)[4]
Explain two benefits of conserving natural resources.
(c)[6]
Analyse how taxation might reduce market failure.
(d)[8]
Discuss the benefits and drawbacks of a market economic system.
Economics 0455 · IGCSE · Market failure
Market failure — practice question
Botswana runs a range of conservation projects. These are believed to bring social benefits to nearby communities. Botswana operates a mixed economic system, and tax revenue as a share of GDP was 27% in 2017. Some Botswanan economists argue that the country ought to shift towards a market economic system, while taking care to avoid market failure.