A-LevelEconomicsMarket Failure / Externalities and Government InterventionFeb/Mar 2023Paper 1 Q131 Mark
Why do some local governments subsidise the provision of bicycles to encourage their use?
AConsumers are afraid of having car accidents.
BConsumers are unable to afford bicycles.
CConsumers are not aware of the external benefits of using bicycles.
DConsumers ignore the external costs of using bicycles.
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The correct answer is C. This question tests the candidate's understanding of market failure / externalities and government intervention within the Economicssyllabus. The examiner's mark scheme requires...
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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...
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