0455.2.10.2 — causes of market failure With respect to public goods, merit and demerit goods, external costs and external benefits, abuse of monopoly powe: past paper questions
Real questions on 0455.2.10.2 — causes of market failure with respect to public goods, merit and demerit goods, external costs and external benefits, abuse of monopoly powe
The newest 20 of 23 written questions. Open one to see it on the real paper.
- 0455/02 · Specimen 2027 · Q1f[6]
Discuss whether or not the Algerian Government should impose a carbon tax. Section B Answer any three questions.
See it on the paper → - 0455/02 · Specimen 2027 · Q3a[2]
Identify the difference between external cost and social cost.
See it on the paper → - 0455/22 · February/March 2026 · Q5c[6]
Analyse how a government could reduce pollution.
See it on the paper → - 0455/21 · October/November 2025 · Q5c[6]
Analyse how government regulation can reduce market failure.
See it on the paper → - 0455/22 · October/November 2025 · Q5c[6]
Analyse how a government subsidy could help to protect an infant industry against foreign competition.
See it on the paper → - 0455/22 · October/November 2025 · Q5d[8]
Discuss whether or not cuts in taxes will reduce a deficit on the current account of a country’s balance of payments.
See it on the paper → - 0455/21 · October/November 2023 · Q3d[8]
whether or not a tax on a product can reduce external costs.
See it on the paper → - 0455/22 · May/June 2023 · Q5d[8]
Discuss whether or not a country with a high economic growth rate will have a deficit on the current account of its balance of payments.
See it on the paper → - 0455/21 · October/November 2022 · Q5a[2]
Define regulation.
See it on the paper → - 0455/21 · May/June 2022 · Q1f[5]
the relationship between inflation rates and current account balances.
See it on the paper → - 0455/21 · May/June 2022 · Q3b[4]
two ways a government could decrease the consumption of demerit goods.
See it on the paper → - 0455/22 · May/June 2022 · Q3d[8]
whether or not the public sector should be responsible for the supply of all internet services.
See it on the paper → - 0455/23 · May/June 2022 · Q4c[6]
Analyse the causes of market failure.
See it on the paper → - 0455/11 · October/November 2021 · Q19[1]
The table shows a government’s receipts from taxation. $m air passenger duty 10 tax on firms’ profits 100 import duty 75 income tax 200 inheritance tax 50 sales tax (VAT) 300 What is the total amount of revenue raised by indirect taxes?
See it on the paper → - 0455/23 · October/November 2021 · Q1c[2]
Explain one external benefit that may arise from eating less meat.
See it on the paper → - 0455/22 · February/March 2021 · Q3d[8]
Discuss whether or not a government should encourage more people to cycle.
See it on the paper → - 0455/22 · February/March 2021 · Q4d[8]
Discuss whether or not an increase in government subsidies will reduce a deficit on the current account of the balance of payments.
See it on the paper → - 0455/23 · October/November 2020 · Q1a[1]
Calculate the external cost per kilometre of driving a car in Manila in 2017.
See it on the paper → - 0455/23 · October/November 2020 · Q2d[8]
Discuss whether or not government intervention will correct the market failure caused by a demerit good.
See it on the paper → - 0455/23 · October/November 2020 · Q3d[8]
Discuss whether or not a government should allow monopolies.
See it on the paper →
What examiners said
Comprehensive responses • Some candidates analysed clearly how governments can reduce pollution by explaining each method and its mechanism. • Some candidates explained how regulations can restrict harmful activities, or how removing subsidies from polluting firms raises their costs of production and discourages output. Limited responses • A few candidates listed methods without explaining how th...
— Examiner report, February/March 2026, 0455/22 Q5(c) (Cambridge)
A small proportion of candidates confused a deficit on the current account of the balance of payments with a budget deficit. A higher proportion produced rather vague answers. For example, some of these stated that exports would increase without explaining why they may increase. There were also some strong answers which explored a range of influences including higher imports arising from higher pr...
— Examiner report, May/June 2023, 0455/22 Q5(d) (Cambridge)
This question was quite well answered, with a clear understanding by most candidates that regulations are rules or laws imposed by the government. Some other candidates lacked a clear idea about the nature of regulations. They often gave taxation, including tariffs, as an answer but these are methods using changes to prices of products to influence behaviour in a market, rather than using rules or...
— Examiner report, October/November 2022, 0455/21 Q5(a) (Cambridge)
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