A-LevelEconomicsGovernment Intervention / Market FailureMay/June 2020Paper 1 Q161 Mark
A government decides to replace a private company with its own company to collect household waste. Why could such action be justified?
ABecause waste collection is a public good.
BCosts of waste collection are bound to be lower if paid out of local taxes.
CPrivate companies are always less efficient than government companies.
DPrivate companies might put profits before customer needs.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of government intervention / market failure within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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