Paper 2 structured question: Market failure
Paper 2Structured Questions1 marks
Description
Understanding Market Failure
Market failure occurs when the allocation of goods and services by a free market is not efficient. Key concepts include public goods, merit goods, demerit goods, social benefits, external benefits, private benefits, social costs, external costs, and private costs.
- a[1]
State one reason why market failure occurs
Aim for approximately 1 distinct marking point.