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A-LevelEconomicsMarket Failure and ExternalitiesOct/Nov 2019Paper 3 Q11 Mark

Some multinational oil companies extracting oil in developing countries are now required to repair the damage they do to the environment. Which best describes the total costs incurred by the oil companies in such circumstances?

Q: What topic does this question test?

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

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2019 examination, Paper 3 Variant 2.

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