Classification of goods and services — Paper 1 · A Level Economics 9708

11 The diagram shows the demand curve, DD1, and the supply curve, SS1, for eye operations. S D price P O S1 D1 number of operations The operations are provided free. Which statement is true? A The equilibrium price is zero. B The equilibrium price is P. C The equilibrium price is indeterminate, because the supply curve is vertical. D Consumer surplus from the operations is ODD1.

1 marks

Answer: B

This question in 9708/11 Oct/Nov 2005

16 Which of the following is a public good? A defence B education C electricity supply D health services

1 marks

Answer: A

This question in 9708/11 Oct/Nov 2005

16 A lighthouse is considered to be a public good. Which characteristic contributes to this? A It gives external benefit. B It causes external cost. C It is non-excludable. D There is rivalry in its use.

1 marks

Answer: C

This question in 9708/11 May/June 2006

1 Why are there no markets for free goods? A Consumers’ valuation of free goods is the same at all levels of demand. B Free goods are non-excludable. C The demand for free goods is infinite. D The supply of free goods is sufficient to satisfy all demand at zero price.

1 marks

Answer: D

This question in 9708/11 Oct/Nov 2006

16 What is an essential characteristic of a private good? A Consumption of the good by one user diminishes the quantity available to others. B Consumption of the good by the user has no external effects on the consumption of others. C It is produced by the private sector. D The user has to pay for it.

1 marks

Answer: A

This question in 9708/11 Oct/Nov 2006

18 For which one of the following reasons might education be considered a merit good? A It benefits both the recipient and society as a whole. B Left to market forces, it would be over-provided. C It does not have a social cost. D Its consumption by one person does not reduce the amount available to others.

1 marks

Answer: A

This question in 9708/11 May/June 2007

16 Advances in technology are turning a number of goods which are usually thought of as public goods (for example, television broadcasting and road use) into private goods. Why might this be so? A Consumer surplus is being increased. B The costs of production are being reduced. C It is becoming easier to exclude non-payers. D The technology is increasing the number of people consuming the goods.

1 marks

Answer: C

This question in 9708/11 Oct/Nov 2007

17 A good is most suitable to be provided by the market if it is A excludable and non-rival. B excludable and rival. C non-excludable and non-rival. D non-excludable and rival.

1 marks

Answer: B

This question in 9708/11 May/June 2008

18 What is a defining characteristic of a private good? A It is purchased by individual customers. B It is supplied exclusively through the market. C It is produced only by private sector firms. D When consumed by one individual, it is not available to others.

1 marks

Answer: D

This question in 9708/11 Oct/Nov 2008

17 Why does the production of public goods have to be financed by the government? A One person’s consumption of a public good means it is not available for anyone else. B People are able to consume public goods without paying for them. C Private sector firms will charge a price significantly above cost for public goods. D The cost of producing public goods is higher in the private sector.

1 marks

Answer: B

This question in 9708/11 May/June 2009

15 Despite much opposition, the local government in a popular tourist resort built a leisure centre and swimming pool which is open to everyone. Many tourists visit the centre. Local residents are charged a reduced entry fee. How would economists classify this service? A It is a demerit good because some people objected to the development. B It is a merit good because the entry fee is reduced for local residents. C It is a private good because there is an entry fee for all users. D It is a public good because it is open to everyone and provided by the local government.

1 marks

Answer: C

This question in 9708/11 Oct/Nov 2009

16 What can be provided only as a public good? A road use B security services C street lighting D TV broadcasting

1 marks

Answer: C

This question in 9708/11 Oct/Nov 2009

14 Despite much opposition, the local government in a popular tourist resort built a leisure centre and swimming pool which is open to everyone. Many tourists visit the centre. Local residents are charged a reduced entry fee. How would economists classify this service? A It is a demerit good because some people objected to the development. B It is a merit good because the entry fee is reduced for local residents. C It is a private good because there is an entry fee for all users. D It is a public good because it is open to everyone and provided by the local government.

1 marks

Answer: C

This question in 9708/12 Oct/Nov 2009

15 What can be provided only as a public good? A road use B security services C street lighting D TV broadcasting

1 marks

Answer: C

This question in 9708/12 Oct/Nov 2009

17 Which good is excludable but non-rival? A air defence B public libraries C street lighting D television broadcasts

1 marks

Answer: D

This question in 9708/11 May/June 2010

12 What does not happen when price acts as a means to allocate resources? A Price determines the supply of public goods. B Price operates in the markets for both goods and factors of production. C Price recognises consumers’ ability to pay rather than consumers’ needs. D Price signals to producers which goods are most profitable.

1 marks

Answer: A

This question in 9708/12 May/June 2010

16 Which good is excludable but non-rival? A air defence B public libraries C street lighting D television broadcasts

1 marks

Answer: D

This question in 9708/12 May/June 2010

12 James grows fruit trees in his garden. They attract butterflies and bees. What is not an externality of this? A Neighbours may be stung by the bees that pollinate the trees. B Neighbours may buy fruit more cheaply from James than the local supermarket. C Neighbours may enjoy better air quality as the trees naturally improve the atmosphere. D Neighbours may like to watch the activity of the wildlife at no cost.

1 marks

Answer: B

This question in 9708/13 May/June 2010

15 Which good is excludable but non-rival? A air defence B public libraries C street lighting D television broadcasts

1 marks

Answer: D

This question in 9708/13 May/June 2010

14 What is the most likely reason economists will give to explain why large hospital projects are often funded by governments? A Governments usually control the construction industry. B Hospitals benefit many people who do not use them. C Hospitals are non-excludable. D Hospitals are an essential service.

1 marks

Answer: B

This question in 9708/11 Oct/Nov 2010

14 What is the most likely reason economists will give to explain why large hospital projects are often funded by governments? A Governments usually control the construction industry. B Hospitals benefit many people who do not use them. C Hospitals are non-excludable. D Hospitals are an essential service.

1 marks

Answer: B

This question in 9708/12 Oct/Nov 2010

13 What is the most likely reason economists will give to explain why large hospital projects are often funded by governments? A Governments usually control the construction industry. B Hospitals benefit many people who do not use them. C Hospitals are non-excludable. D Hospitals are an essential service.

1 marks

Answer: B

This question in 9708/13 Oct/Nov 2010

17 What is a distinguishing feature of a public good that is not found with private goods? A Consumption depends on the ability to pay. B It creates negative externalities. C Its consumption by one consumer can have an effect on other consumers. D Its consumption by one consumer does not restrict consumption by other consumers.

1 marks

Answer: D

This question in 9708/11 May/June 2011

16 What is a distinguishing feature of a public good that is not found with private goods? A Consumption depends on the ability to pay. B It creates negative externalities. C Its consumption by one consumer can have an effect on other consumers. D Its consumption by one consumer does not restrict consumption by other consumers.

1 marks

Answer: D

This question in 9708/12 May/June 2011

15 What is a distinguishing feature of a public good that is not found with private goods? A Consumption depends on the ability to pay. B It creates negative externalities. C Its consumption by one consumer can have an effect on other consumers. D Its consumption by one consumer does not restrict consumption by other consumers.

1 marks

Answer: D

This question in 9708/13 May/June 2011

17 Which good or service is excludable but non-rival in consumption? A fish stocks B national defence C street lighting D TV broadcasting

1 marks

Answer: D

This question in 9708/11 Oct/Nov 2011

17 What is a merit good? A a good or service which has higher social costs than private costs B a good or service which has no opportunity cost C a good or service which is both non-excludable and non-rival D a good or service which has a greater value than individuals recognise

1 marks

Answer: D

This question in 9708/12 Oct/Nov 2011

14 What is a merit good? A a good that is made available to consumers according to merit B a good that the government believes consumers will buy too little of if it is provided by private enterprise at market prices C a good where any benefit obtained by one consumer is extended to all consumers D a good where the private benefits of consuming the good exceed its social benefits

1 marks

Answer: B

This question in 9708/13 Oct/Nov 2011

15 Which good or service is excludable but non-rival in consumption? A fish stocks B national defence C street lighting D TV broadcasting

1 marks

Answer: D

This question in 9708/13 Oct/Nov 2011

16 Why does the production of public goods have to be financed by the government? A One person’s consumption of a public good means it is not available for anyone else. B People are able to consume public goods without paying for them. C Private sector firms will charge a price significantly above cost for public goods. D The cost of producing public goods is higher in the private sector.

1 marks

Answer: B

This question in 9708/11 May/June 2012

16 Why does the production of public goods have to be financed by the government? A One person’s consumption of a public good means it is not available for anyone else. B People are able to consume public goods without paying for them. C Private sector firms will charge a price significantly above cost for public goods. D The cost of producing public goods is higher in the private sector.

1 marks

Answer: B

This question in 9708/12 May/June 2012

17 A government wishes to encourage the consumption of a merit good and reduce the consumption of a demerit good. Which policy should it adopt towards each good? merit good demerit good A confine access to certain age groups tax output B increase advertising on the benefits of set a minimum level of output the good C subsidise the good put legal controls on output D tax the good produce only in the public sector

1 marks

Answer: C

This question in 9708/11 Oct/Nov 2012

17 What is a defining characteristic of a public good? A An increase in consumption by one individual leaves the quantity available to others unchanged. B Consumption of the good by one individual confers benefits on other individuals. C The benefits obtained by those who consume the good are greater than they themselves realise. D The good is consumed jointly by all members of society.

1 marks

Answer: A

This question in 9708/13 Oct/Nov 2012

13 In which case is the price system not a possible method of allocating resources? A in the distribution of foodstuff among the population B in the hiring of workers by employers C in the ownership of land for agricultural use D in the provision of public goods by the government

1 marks

Answer: D

This question in 9708/11 May/June 2013

16 A good is more likely to be supplied by the government rather than a private company if it is A excludable and non-rival. B excludable and rival. C non-excludable and non-rival D non-excludable and rival

1 marks

Answer: C

This question in 9708/11 May/June 2013

17 Advances in technology are turning a number of goods which are usually thought of as public goods, for example, television broadcasting, into private goods. Why might this be so? A Consumer surplus is being increased. B The costs of production are being reduced. C It is becoming easier to exclude non-payers. D The technology is increasing the number of people consuming the goods.

1 marks

Answer: C

This question in 9708/13 May/June 2013

17 A local council charges for the use of tennis courts but not for the use of street lights. How would an economist explain this? A Tennis courts are a luxury but street lights are a necessity. B Tennis courts are worth more than street lights. C There is an opportunity cost of using land to build tennis courts but not street lights. D The use of street lights cannot be restricted.

1 marks

Answer: D

This question in 9708/11 Oct/Nov 2013

16 A good is produced which consumers are unable to avoid consuming. What type of good is this? A demerit good B inferior good C private good D public good

1 marks

Answer: D

This question in 9708/12 Oct/Nov 2013

16 What is the defining characteristic of a private good? A Consumption by one individual reduces the amount of the good available to others. B The benefits derived from the good are confined to those who consume it. C The good is wholly produced within the private sector. D To acquire the good a consumer must be willing and able to pay for it.

1 marks

Answer: A

This question in 9708/13 Oct/Nov 2013

17 A local government decided to organise a craft show in its exhibition centre. Admission was $3. It promoted the show by paying for advertisements on advertising sites around the area. How may the craft show and the advertisements be classified from the viewpoint of local residents? craft show advertisements A private good private good B private good public good C public good private good D public good public good

1 marks

Answer: B

This question in 9708/11 May/June 2014

17 A local council runs a museum. It used to charge an admission fee. It decided to give free entry in the hope of encouraging more people to use the museum and find out about the history of its area which the council regards as being important. What can be said about the museum? A It is a merit good because it is believed to be worth greater attendance. B It is a merit good because it is run by the local council. C It is a public good because anyone can use the museum. D It is a public good because people do not now have to pay for admission

1 marks

Answer: A

This question in 9708/13 May/June 2014

17 A good is most suitable to be provided by the market if it is A excludable and non-rival. B excludable and rival. C non-excludable and non-rival. D non-excludable and rival.

1 marks

This question in 9708/11 Oct/Nov 2014

16 What can be provided only as a public good? A road use B security services C street lighting D TV broadcasting

1 marks

Answer: C

This question in 9708/12 Oct/Nov 2014

1 Under normal circumstances, taking a breath of fresh air involves no opportunity cost. This shows that fresh air is A a free good. B a merit good. C a public good. D an economic good.

1 marks

Answer: A

This question in 9708/13 Oct/Nov 2014

15 Which statement about the provision of goods is correct? A Governments and private producers supply merit goods. B Governments and private producers supply public goods. C Governments are unable to supply private goods. D Governments subsidise the production of demerit goods.

1 marks

Answer: A

This question in 9708/13 Oct/Nov 2014

17 A national museum charges an entry fee for admission. Which combination of rival and excludable qualities would apply to visits to the national museum on a day when there are very few visitors? rival excludable A no no B no yes C yes no D yes yes

1 marks

Answer: B

This question in 9708/12 May/June 2015

17 Prisoners are able to buy an upgrade on the type of prison cell they are allocated in some state- run prisons in California. What does this indicate? A Public goods can be made excludable. B Public goods use price as an allocative mechanism. C The market system is not only used for private enterprise. D The market system misallocates resources.

1 marks

Answer: C

This question in 9708/13 May/June 2015

14 In 2011, the Health Ministry in a country encouraged parents to have their children vaccinated against measles. The parents did not have to use the vaccine and did not have to pay for it. The government cancelled other projects to fund the programme from taxation because research concluded that the vaccine benefited the community by preventing the spread of a serious illness. Which concepts are implied in the above statement? A external benefit, public sector, opportunity cost B market mechanism, fiscal policy, public good C merit good, normative statement, regulatory control D private cost, social benefit, monetary policy

1 marks

Answer: A

This question in 9708/12 Oct/Nov 2015

17 What is the best example of what was once a public good becoming a private good? A education B medical care C postal services D television broadcasts

1 marks

Answer: D

This question in 9708/12 Oct/Nov 2015

14 People walking past a bakery often comment on the pleasure of smelling freshly baked bread. Of what is this an example? A a negative consumption externality B a negative production externality C a positive consumption externality D a positive production externality

1 marks

Answer: D

This question in 9708/13 Oct/Nov 2015

17 Which statement is correct? A A demerit good is overconsumed. B A demerit good produces zero consumer surplus. C A merit good is defined by its non-excludability and non-rivalry. D A merit good is provided free of charge.

1 marks

Answer: A

This question in 9708/13 Oct/Nov 2015

4 In 2014, there was an outbreak of ebola, a deadly disease, in West Africa. People obtained information from hospitals, radio broadcasts and notices posted by the roadside on how to prevent the disease from spreading. How can these sources of information be classified? hospitals radio broadcasts notices A private good private good public good B private good public good public good C public good private good private good D public good public good private good

1 marks

Answer: B

This question in 9708/12 Feb/March 2016

4 The provision of which service by governments could be explained by the concept of public goods? A education B health services C law enforcement D public libraries

1 marks

Answer: C

This question in 9708/13 May/June 2016

4 Very heavy rain often causes houses to flood. The government protects the area with flood defence schemes while households buy sandbags to protect their houses. How would an economist classify these items? flood defence sandbags schemes A merit goods private goods B merit goods public goods C public goods private goods D public goods public goods

1 marks

Answer: C

This question in 9708/11 Oct/Nov 2016

17 Which goods will be provided only by the government? A capital goods B inferior goods C merit goods D public goods

1 marks

Answer: D

This question in 9708/13 Oct/Nov 2016

4 Despite much opposition, the local government in a popular tourist resort built a leisure centre and swimming pool which is open to everyone. Many tourists visit the centre. Local residents are charged a lower entry fee than the fee charged to the tourists. How would economists classify this service? A It is a demerit good because some people objected to the development. B It is a merit good because the entry fee is reduced for local residents. C It is a private good because there is an entry fee for all users. D It is a public good because it is open to everyone and provided by the local government.

1 marks

Answer: C

This question in 9708/12 Feb/March 2017

4 An individual buys a ticket to visit a government-owned art gallery. How would this visit be classified by an economist? A private and demerit good B private and merit good C public and demerit good D public and merit good

1 marks

Answer: B

This question in 9708/11 May/June 2017

4 What is an accurate statement about different types of goods? A Free goods are offered for sale at a loss-making price. B Merit goods generate more consumer surplus than producer surplus. C Private goods can be consumed with no opportunity cost. D Public goods can be used by additional consumers with no extra production cost.

1 marks

Answer: D

This question in 9708/13 May/June 2017

4 Which types of good are distinguished from one another by the presence or absence of opportunity cost? A demerit and merit goods B economic and free goods C inferior goods and normal goods D private and public goods

1 marks

Answer: B

This question in 9708/11 Oct/Nov 2017

11 What does not happen when price acts as a means to allocate resources? A Price determines the supply of public goods. B Price operates in the markets for both goods and factors of production. C Price recognises consumers’ ability to pay rather than consumers’ needs. D Price signals to producers which goods are most profitable.

1 marks

Answer: A

This question in 9708/12 Oct/Nov 2017

4 The Bureau of Alcohol, Tobacco, Firearms and Explosives is a branch of the United States Government which regulates markets. What does its name imply is most likely to be its main responsibility? A to prevent harm from demerit goods B to provide subsidies for essential goods C to raise revenue from goods in elastic demand D to safeguard employment in manufacturing industry

1 marks

Answer: A

This question in 9708/12 Feb/March 2018

18 What is the major problem associated with a government directly providing the correct amount of a public good? A competition from private producers B estimation of demand C increased trade diversion D rivalry in consumption

1 marks

Answer: B

This question in 9708/12 Feb/March 2018

4 Governments provide public goods. What is an example of a public good? A the services provided by a defence force B the services provided by a hospital C the services provided by a leisure centre D the services provided by a toll road

1 marks

Answer: A

This question in 9708/12 May/June 2018

4 A businesswoman sets up a charity to provide toys for young children of low income families. Which term most accurately describes these toys? A free goods B merit goods C private goods D public goods

1 marks

Answer: C

This question in 9708/12 Oct/Nov 2018

18 There have been recent calls for the UK government to nationalise its railways. What would not be a reason for nationalising the railways? A Private rail companies often charge high ticket prices. B Private rail companies may exploit monopoly power. C Railways are an essential part of national infrastructure. D Railways should be treated as a public good.

1 marks

Answer: D

This question in 9708/12 Oct/Nov 2018

4 What is a statement of the non-rivalrous nature of public goods? A It is not possible to stop a non-payer from using the product. B One person consuming the product does not reduce the amount of it available to others. C People consume too little of the product because they are unaware of its true benefits. D There is an unlimited supply of the product.

1 marks

Answer: B

This question in 9708/13 Oct/Nov 2018

17 A flood-control dam is an example of a good provided directly by a government. Which statement relating to the direct provision of a flood-control dam is not correct? A Direct provision of a flood-control dam allows the government to tackle the failure to provide public goods. B Direct provision of a flood-control dam forces the government to incur an opportunity cost. C Direct provision of a flood-control dam involves the supply of a merit good. D Direct provision of a flood-control dam is an example of government allocation of resources.

1 marks

Answer: C

This question in 9708/13 Oct/Nov 2018

2 ‘An increase in consumption by one person leaves the benefits available to others undiminished’. Which good does this statement define? A a demerit good B a merit good C a private good D a public good

1 marks

Answer: D

This question in 9708/12 Feb/March 2019

18 What is unlikely to occur with an increase in the provision of public goods? A consumer non-excludability B improved use of resources C opportunity cost D reduction in tax

1 marks

Answer: D

This question in 9708/11 May/June 2019

14 Which product is most likely to be provided only by the government? A national defence B national health C national museums D national theatres

1 marks

Answer: A

This question in 9708/11 Oct/Nov 2019

3 A good’s defining quality is that its consumption by one person prevents its consumption by someone else. How is this good classified? A a free good B a non-excludable good C a non-rival good D a private good

1 marks

Answer: D

This question in 9708/12 Oct/Nov 2019

2 Which is closest to being a public good? A electricity B health services C street lighting D water supply

1 marks

Answer: C

This question in 9708/13 Oct/Nov 2019

3 Consumers do not use enough of a product to maximise their private benefit because they have imperfect information about the product. How would an economist classify this product? A demerit good B free good C merit good D public good

1 marks

Answer: C

This question in 9708/11 May/June 2020

18 What is a necessary characteristic of a public good? A It has a fixed maximum price. B It has an opportunity cost of production of zero. C It is non-excludable. D It is an essential good.

1 marks

Answer: C

This question in 9708/11 May/June 2020

3 Which type of good is healthcare? A demerit B free C merit D public

1 marks

Answer: C

This question in 9708/13 May/June 2020

17 A good is provided by the government. Consumption by one person does not affect the amount of the good available for others. Which type of good must this be? A complementary good B merit good C private good D public good

1 marks

Answer: D

This question in 9708/11 Oct/Nov 2020

2 Which statement is correct? A Private goods are both non-rival and non-excludable. B Private goods are only provided by the private sector. C Public goods are both non-rival and non-excludable. D Public goods do not incur opportunity costs.

1 marks

Answer: C

This question in 9708/12 Oct/Nov 2020

2 What is characterised as a free good? A one that has zero opportunity cost B one that is non-excludable and non-rivalrous C one that is supplied by the government with no charge D one that receives a 100% government subsidy

1 marks

Answer: A

This question in 9708/13 Oct/Nov 2020

4 A government wants to prevent the spread of an infectious disease by vaccinating all children. Why might vaccination be classified as a merit good? A The benefit to society is equal to the benefit received by the individual. B The good is excludable. C The good is not vital. D The good would otherwise be under-consumed.

1 marks

Answer: D

This question in 9708/13 Oct/Nov 2020

18 Why is national defence provided by the government? A In a free market it is excludable and rival in consumption. B In a free market it is non-excludable and non-rival in consumption. C The government has perfect information, so it can set the correct quantity required. D The private sector firm would charge a high price for its use as it is a necessity.

1 marks

Answer: B

This question in 9708/12 Feb/March 2021

1 A tourist visits the coast for a holiday. On her first day, she visits the local tourist office for information, goes for a swim in the sea, spends the evening enjoying the view of the coastline and rents a campsite for an overnight stay. Which activities involve economic goods and which involve free goods? economic goods free goods A camping and information swimming and sightseeing B information and swimming sightseeing and camping C sightseeing and camping information and swimming D swimming and sightseeing camping and information

1 marks

Answer: A

This question in 9708/12 May/June 2021

18 Education from 4 to 16 years of age in most developed economies is provided at zero price, financed from taxation. Why should the government do this? A In a free market, consumers have imperfect information so do not realise the full personal benefit of education. B In a free market, education is not considered to be a private good. C In a free market, consumers will be unwilling to pay for education. D In a free market, education is non-rival and non-excludable in consumption so zero output would be produced.

1 marks

Answer: A

This question in 9708/12 May/June 2021

1 A government department provides milk at no charge to very low income families. Which term best describes the milk? A free good B inferior good C private good D public good

1 marks

Answer: C

This question in 9708/13 May/June 2021

14 In many countries there are goods that must be provided directly by the government. What would be the most convincing argument for such provision? A The consumption of these products may be beneficial. B The production of these products may be harmful. C The production of these products have high opportunity costs. D These products are non-rival in consumption and non-excludable.

1 marks

Answer: D

This question in 9708/13 May/June 2021

3 What is classified as a public good by economists? A flood defences B government-funded hospitals C government-run national parks D the internet

1 marks

Answer: A

This question in 9708/12 Oct/Nov 2021

15 Why does the production of public goods have to be financed by the government? A One person’s consumption of a public good means it is not available for anyone else. B People are able to consume public goods without paying for them. C Private sector firms will charge a price significantly above cost for public goods. D The cost of producing public goods is higher in the private sector.

1 marks

Answer: B

This question in 9708/13 Oct/Nov 2021

9 When will the price mechanism be least likely to reallocate resources to meet a change in consumer preferences? A when the government removes all price controls B when the new preferences are for more public goods C when the supply of factors of production is limited D when there is a redistribution of income

1 marks

Answer: B

This question in 9708/12 Feb/March 2022

16 The National Library Board of Singapore is a public sector organisation that finances and manages the state libraries. What is the most likely reason for this? A Libraries are public goods. B Libraries are merit goods. C The cost of providing library services would be greater in the private sector. D The opportunity cost to the public sector of providing library services is zero.

1 marks

Answer: B

This question in 9708/12 Feb/March 2022

12 What does not happen when price acts as a means to allocate resources? A Price determines the supply of public goods. B Price operates in the markets for both goods and factors of production. C Price recognises consumers’ ability to pay rather than consumers’ needs. D Price signals to producers which goods are most profitable.

1 marks

Answer: A

This question in 9708/12 May/June 2022

18 What is unlikely to occur with an increase in the provision of public goods? A consumer non-excludability B improved use of resources C opportunity cost D reduction in tax

1 marks

Answer: D

This question in 9708/12 May/June 2022

2 A local council provides a tap for drinking water in a town. Would this make drinking water a free good? A No, because it is possible to exclude some people from using the tap. B No, because it requires the use of scarce resources. C Yes, because it is available to all passers-by. D Yes, because it is impossible to charge for it.

1 marks

Answer: B

This question in 9708/11 Oct/Nov 2022

3 A key concept in classifying goods is whether a good is rival or non-rival. Which good is rival in consumption? A an ice cream B street lighting C a radio broadcast D the internet

1 marks

Answer: A

This question in 9708/12 Oct/Nov 2022

1 A good is most suitable to be provided by the market if it is A excludable and non-rival. B excludable and rival. C non-excludable and non-rival. D non-excludable and rival.

1 marks

Answer: B

This question in 9708/12 Feb/March 2023

7 In which case is the price system not a possible method of allocating resources? A in the distribution of foodstuff among the population B in the hiring of workers by employers C in the ownership of land for agricultural use D in the provision of public goods by the government

1 marks

Answer: D

This question in 9708/12 Feb/March 2023

1 People plant flowers in a local park. Which statement is correct? A Flowers in parks are a public good because people can enjoy them at no charge. B Flowers in parks are a public good because they are owned by local people and are not for profit. C Flowers in parks are not a public good if local people can limit the number of visitors to the parks. D Flowers in parks are not a public good if they are individual, not identical, in nature.

1 marks

Answer: C

This question in 9708/13 May/June 2023

3 A country’s health care is funded by taxation but can be used free of charge by patients. Which type of good is health care in this country? A demerit good B free good C private good D public good

1 marks

Answer: C

This question in 9708/11 Oct/Nov 2023

14 A government introduces charges for vehicles using the roads in its capital city. Which characteristic must the roads have for this to be successful in reducing congestion? A The roads must be excludable. B The roads must be merit goods. C The roads must be non-rivalrous. D The roads must be public goods.

1 marks

Answer: A

This question in 9708/11 Oct/Nov 2023

3 A new section of a road is provided toll-free by the government. What best describes this good? A a demerit good B a free good C a private good D a public good

1 marks

Answer: C

This question in 9708/12 Oct/Nov 2023

2 Consumers do not use enough of a product to maximise their private benefit because they have imperfect information about the product. How would an economist classify this product? A demerit good B free good C merit good D public good

1 marks

Answer: C

This question in 9708/13 Oct/Nov 2023

4 What is an example of a free good? A a government sponsoring a free vaccination programme for its citizens B a hospital providing free treatment to the poor C a school providing free education to outstanding students D anything that provides free utility but is not scarce

1 marks

Answer: D

This question in 9708/13 Oct/Nov 2023

4 What is the main reason an economy is unlikely to rely completely on market forces to allocate resources? A Demerit goods will be over supplied. B Merit goods will be under supplied. C Private goods will not be supplied. D Public goods will not be supplied.

1 marks

Answer: D

This question in 9708/12 Feb/March 2024

13 What explains the underconsumption of merit goods? A Their value is not fully understood by consumers. B They are unproductive goods and services. C They can only be provided by the government. D They are only provided by private sector businesses.

1 marks

Answer: A

This question in 9708/12 Feb/March 2024

12 A government gives free food to poor households in a community. What is this food an example of? A a free good B a public good C a demerit good D a normal good

1 marks

Answer: D

This question in 9708/11 May/June 2024

3 Earth observation satellites designed to acquire information are close to the theoretical case of a public good. In 2011, the World Meteorological Organisation estimated that improving satellite observations would cost an extra $1 billion a year. What is a normative statement about Earth observation satellites? A The estimated cost of improving satellite observations is $1 billion a year. B The information received from the satellites is non-rival. C The satellites are designed to acquire the best possible information on climate change. D The responsibility for the cost of Earth observation satellites should be shared by all governments.

1 marks

Answer: D

This question in 9708/12 May/June 2024

13 What is an example of a public good? A a new road linking a major city with a port B free lunches provided to students at a school C Wi-Fi (internet access) provided for all the citizens of a town D state provision of a national defence system

1 marks

Answer: D

This question in 9708/12 May/June 2024

1 What is not an example of a public good? A education B flood control systems C national defence D street lighting

1 marks

Answer: A

This question in 9708/13 May/June 2024

3 Which activity illustrates the consumption of a ‘free’ good? A a farmer using water taken from a river B a patient visiting a medical facility provided by a charity C a person breathing air in the countryside D a person eating their birthday cake given as a gift by a friend

1 marks

Answer: C

This question in 9708/13 May/June 2024

3 Which statement is not correct? A Addictive drugs are regarded as demerit goods because users are unaware of the full damage they do. B Air is regarded as a free good because its use has no opportunity cost. C National defence is regarded as a public good because one citizen ‘consuming’ it reduces the amount of it available to others. D Visits to a doctor are regarded as private goods partly because they are rival.

1 marks

Answer: C

This question in 9708/11 Oct/Nov 2024

2 Which type of good does not consume scarce resources? A economic good B free good C merit good D public good

1 marks

Answer: B

This question in 9708/13 Oct/Nov 2024

12 Which policy is most likely to solve the free rider problem caused by public goods? A an advertising campaign B a direct provision by the government C a minimum price D a tax on a substitute good

1 marks

Answer: B

This question in 9708/13 Oct/Nov 2024

5 How can a public good become a private good? A Consumers are dissatisfied with the performance of state-run services. B New technological developments make the good excludable. C The government privatises the industry producing the good. D The price of the good increases so it becomes more profitable.

1 marks

Answer: B

This question in 9708/11 May/June 2025

3 What is a statement of the non-rivalrous nature of public goods? A It is not possible to stop a non-payer from using the product. B One person consuming the product does not reduce the amount of it available to others. C People consume too little of the product because they are unaware of its true benefits. D There is an unlimited supply of the product.

1 marks

Answer: B

This question in 9708/12 May/June 2025

1 A tourist visits a government-owned tropical beach. She pays $10 to enter but finds it overcrowded. Which type of good is the beach? A a free good B an inferior good C a public good D a private good

1 marks

Answer: D

This question in 9708/13 May/June 2025

13 A flood-control dam is an example of a good provided directly by a government. Which statement relating to the direct provision of a flood-control dam is not correct? A It allows the government to tackle the failure to provide public goods. B It forces the government to incur an opportunity cost. C It involves the supply of a merit good. D It is an example of government allocation of resources.

1 marks

Answer: C

This question in 9708/13 May/June 2025

4 What is an example of a public good? A A ferry that takes members of the public across a river. B A fish farm that is owned by the government. C A fishing boat that is owned by all members of a village. D A lighthouse that warns boats of dangerous rocks.

1 marks

Answer: D

This question in 9708/11 Oct/Nov 2025

5 Which merit good is likely to be under-consumed the most? level of imperfect subsidy received information among by producers consumers A high yes B high no C low yes D low no

1 marks

Answer: B

This question in 9708/11 Oct/Nov 2025

2 A public good must both be non-rivalrous in consumption and have the characteristic of non-excludability. Which situation meets both of these conditions? A a former nationalised rail network which has been privatised B a good that has an opportunity cost C the building of a new toll road which charges all users the same toll D the provision of street lighting which improves a locality

1 marks

Answer: D

This question in 9708/12 Oct/Nov 2025

6 A good is provided by the government. Consumption by one person does not affect the amount of the good available for others. Which type of good must this be? A complementary good B merit good C private good D public good

1 marks

Answer: D

This question in 9708/13 Oct/Nov 2025