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A-LevelEconomicsMarket FailureOct/Nov 2017Paper 3 Q21 Mark

A town council estimated the costs and benefits of operating a bus service in 2015 and 2016. These are shown in the table. 2015 $000 2016 $000 private costs 2000 2200 external costs 500 900 private benefits 1500 2300 external benefits 1000 800 What can be concluded from the table?

Q: What topic does this question test?

This question tests Market Failure in A-Level Economics (syllabus code 9708). It is worth 1 mark.

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This structured question tests Market Failure in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2017 examination, Paper 3 Variant 1.

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