Using examples, explain why some goods cannot be provided as private goods.

Mark scheme

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

1. [1] Define private goods in terms of excludability.
2. [1] Define private goods in terms of rivalry in consumption.
3. [Up to 3] Explain why some goods are non-excludable and thus cannot be provided as private goods, leading to the free-rider problem, with relevant examples (e.g., public goods).
4. [Up to 3] Explain why some goods are non-rival and thus cannot be provided as private goods, with relevant examples (e.g., public goods).
5. [Max 2 for each type] If no example is provided.
6. [Up to 4] Analysis of the costs and benefits of subsidising forms of transport considered as merit goods (e.g., public transport reduces congestion and pollution, provides access for low-income individuals).
7. [Up to 4] Analysis of the costs and benefits of subsidising forms of transport not considered as merit goods (e.g., private car usage, luxury air travel).
8. [Up to 4] Evaluative comment on whether all forms of transport should be subsidised.
9. [1] A reasoned conclusion.