A-LevelEconomicsMicroeconomics: Market Failure & Government InterventionMay/June 2018Paper 3 Q31 Mark
The table shows some of the costs and benefits, in $ millions, associated with a road building project. Both a government department and a profit-maximising private firm are considering building the road. private costs | external costs | external benefits | social benefits --------------|----------------|-------------------|--------------- 450 | 75 | 50 | 550 Who would be willing to build the road? A Both would be willing to build it. B Neither would be willing to build it. C Only the government department would be willing to build it. D Only the private firm would be willing to build it.
📋 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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