logo

Cambridge IGCSE Economics practice

Paper 2 structured question: Market failure

Try the question first, then check the answer and practise the same topic again.

At a glance

2

Paper

1

Marks

Topic

Market failure

Exam-style question

Try this first

Paper 2Structured Questions1 marks

Market failure can significantly impact economic efficiency.

Description

Factors Leading to Market Failure

Market failure occurs when the allocation of goods and services is not efficient. Key factors include public goods, merit and demerit goods, external costs and benefits, monopoly power abuse, and factor immobility.

  1. a

    State one factor that leads to market failure

    Aim for approximately 1 distinct marking point.

    [1]

0 of 1 part answered

Answer every part before opening the mark scheme.

Common mistake

No common mistake is linked to this question yet.

Related flashcards

Flashcard 1 of 6

Press Space to flip, arrows to move

Related practice questions

Question 1 of 5

Choose an answer, get feedback, then move sideways through the set.

0 of 4 attempted

Paper 2 structured question: Market failure

Paper 2Structured Questions4 marks

Description

Market Failure Factors

Market failure can arise from various factors including public goods, merit and demerit goods, externalities, monopoly power, and factor immobility. Each of these factors can lead to inefficiencies in the market.

  1. a

    Explain two factors that lead to market failure and provide examples for each

    Aim for approximately 4 distinct marking points.

    [4]