A-LevelEconomicsMarket Failure and Government InterventionMay/June 2013Paper 1 Q141 Mark

Which is not an example of an externality?

Q: What topic does this question test?

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

AThe establishment of a new firm in an area increases the general level of wage rate area.

BThe flowers planted by a householder in his garden give pleasure to his neighbours.

CThe immunisation of children against smallpox reduces the danger of the risk of infection to others.

DThe installation of security cameras in a city centre results in an increase in thefts elsewhere.

✓ Correct Answer

The correct answer is A: The establishment of a new firm in an area increases the general level of wage rate area.

📋 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 multiple-choice question tests Market Failure and Government Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2013 examination, Paper 1 Variant 2.

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