Explain the features of a public good. Consider whether a motorway (highway) provides an example of a public good.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [2] For knowledge and understanding of the features of a public good. Public goods are non-excludable: what this means (1 mark) and non-rival in consumption: what this means (1 mark) (KU: up to 2 marks)
2. [3] For application that considers whether a motorway could be classified as a public good through an examination of whether it is excludable or non-excludable. For example, free riders can be excluded through tolls but it may not be practicable to erect toll-booths. (Up to 3 marks)
3. [3] For application that considers whether a motorway could be classified as a public good because there is rivalry in consumption. Traffic jams for example may occur. These however might only occur at peak periods. (Up to 3 marks)
4. [4] For analysis of the impact of increased government spending upon aggregate demand with reference to the intersection of the increased aggregate demand with the aggregate supply curve. (Up to 4 marks)
5. [4] For analysis of the impact of increased government spending upon infrastructure and aggregate supply with reference to the intersection of the increased aggregate supply with the aggregate demand the curve. (Up to 4 marks)
6. [4] For evaluative comment with due reference to the relative shifts of each curve and their point of intersection (Up to 3 marks) to arrive at a conclusion on whether the increased spending will always cause a rise in the rate of inflation (1 mark). (EV: up to 4 marks)