Governments provide many public and merit goods.

Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

1. **(a)** Knowledge 2
2. 2 marks for a clear and accurate definition, e.g. a good that is non-rivalrous and non-excludable (2)
3. 1 mark for a partial definition, e.g. non-rivalrous OR non-excludable (1)
4. **(b)** Knowledge 2, Application 2, Analysis 2
5. Knowledge: 2 marks for identification of two characteristics, e.g. positive externalities / people underestimate benefits / underprovided (1)
6. Application: 2 marks for applying these characteristics, e.g. healthcare benefits society as a whole / education benefits individual and society (1)
7. Analysis: 2 marks for explaining how these characteristics lead to market failure, e.g. under-consumption and under-provision / resource misallocation (1)