A-LevelEconomicsMarket Failure and Government InterventionFeb/Mar 2018Paper 3 Q21 Mark
A government school is built by private builders in a residential neighbourhood. The builders ignore the effects of noise and disturbance. Why does a free market fail to take into account these external costs of building the school? A Education is a public good which benefits society. B Few people who live near the school object to the building. C The government believes schools should be built privately. D These costs are not paid for by the builders.
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