a2 topical past paper questions

8.1 Government policies to achieve efficient resource allocation and correct market failure 

9708/42/F/M/24

With the help of a diagram, assess the effectiveness of a government’s intervention in the price mechanism to address the causes of climate change. [20]

9708/43/O/N/23 

Pollution is caused when consumers or producers make decisions based on self-interest. This is a sign of market failure. 

With the help of a diagram, evaluate the extent to which government policies should rely upon market forces to address this market failure. [20] 

9708/42/F/M/22

The use of cars in large cities can cause traffic congestion and pollution. 

Explain how the use of cars may cause allocative inefficiency and discuss two alternative government policies that might be used to solve this problem. [13] 

9708/42/M/J/22 

Evaluate two policies a government may implement to reduce the impact of climate change. [13] 

9708/42/O/N/21 

Discuss whether market failure can be successfully eliminated by governments. [25] 

9708/43/O/N/21 

Analyse the reasons why it might be thought necessary for a government to control dominant firms in an industry and consider the methods it might use to achieve such control. [25] 

9708/42/M/J/21 

‘Market failure can always be overcome to increase economic efficiency.’ How far do you agree with this statement? [13] 

9708/42/F/M/21 

‘Smoking cigarettes causes negative externalities and negative externalities cause market failure, which can only be solved by government intervention.’ 

To what extent do you agree with this statement? [25]