Optional25 marks
Case study · Markets for food and drinks high in fat, salt or sugar (HFSS)
Evaluate the microeconomic and macroeconomic effects of increased government spending on education to promote healthy eating in the UK.
Specification point 1.3.4 · Theme 1
Information gaps
Market failure · Introduction to markets and market failure
Questions tagged to this specification point
9 questions
Essay questions
Long-form evaluation and discussion
Optional20 marks
Case study · Health provision
Evaluate the possible disadvantages of a free market approach to providing health care.
Data-response questions
Questions built around exam extracts
5 marks
Case study · The cost of living in the UK
Explain one reason why consumers buy less than the social optimum quantity of healthy food.
10 marks
Case study · The market for higher education in the UK
Assess the likely impact of these drop-out rates on the allocation of resources within an economy.
6 marks
Case study · Health provision
Explain how ‘asymmetric information’ (Extract B, line 30) can lead to market failure in health provision.
10 marks
Case study · Supermarket price war, food waste and possible mergers
Assess the extent to which ‘information gaps’ (Extract B, lines 5 and 6) and ‘irrational behaviour’ (Extract B, line 11) are the main causes of food waste in the UK.
Learn this question
Open a video explanation without leaving the question.
Short-answer questions
Focused calculations, explanations and diagrams
4 marks
ContextNearly 750 000 consumers in Britain face unresolved problems with used car purchases every year. Older vehicles tend to have more faults and increase the risks facing a potential buyer.
With reference to the data above, explain how imperfect market information may lead to a misallocation of resources in the used-car market.
3 marks
ContextSingapore is mainly a free market economy.
Singapore’s education system is provided by the state. With reference to the information above, explain why education is normally provided by the state.
1 mark
ContextIn the UK charges for dental treatment vary. For example, the following charges can be made for a tooth filling: • National Health Service (NHS) dental treatment £50.50 • Private dental treatment £95–£700 A dentist can choose to offer NHS treatment, private treatment or both.
Define the term ‘asymmetric information’.
Multiple-choice questions
Quick checks of economic understanding
No multiple-choice questions tagged to this point yet.
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