AQA · Microeconomics · Market failure and government intervention

AQA Economics past paper questions: Market failure and government intervention

Every AQA question on Market failure and government intervention from 2016 to 2025: 12 essays, 66 data response questions and 66 multiple choice questions. It covers Externalities, Government intervention (micro), Merit & demerit goods, Indirect taxes & subsidies and Market failure (general). Each question links to its paper, mark scheme and examiner report.

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SubtopicsExternalities 46Government intervention (micro) 38Merit & demerit goods 36Indirect taxes & subsidies 25Market failure (general) 21Public goods 15Price controls 12Government failure 7Demand & supply 6Price elasticity of demand 3Commodity markets 2Behavioural economics 2Scarcity & choice 2Labour demand & supply 2Inequality & poverty 1Price elasticity of supply 1Protectionism & trading blocs 1Unemployment 1Imperfect information 1Cross elasticity 1Positive & normative 1Technological change 1Fiscal policy & public finances 1

Essay questions on market failure and government intervention

A-level Paper 1, June 2025, Q9Explain15 marks

Explain, with examples, the differences between a private good, a public good and a quasi-public good.

Examiner insight

What to cover: Private goods are rival and excludable. Public goods are non-rival and non-excludable, so the free-rider problem stops private supply. Quasi-public goods have some public good features, such as roads.
Watch out: Use clear examples for each type.

Question paper p.6 Mark scheme p.16 Examiner report p.7 Open in the tool

A-level Paper 1, June 2022, Q10Assess25 marks

Assess the view that high-speed Internet connection is a necessity for modern life and should be provided by the government, free of charge, to all households.

Examiner insight

What to cover: High-speed internet has positive externalities (productivity, education, access to services) and may be under-consumed, especially in rural areas.
Watch out: Say what type of good it is and why the market under-provides it.

Question paper p.6 Mark scheme p.17 Examiner report p.6 Marked student answers p.41 Open in the tool

A-level Paper 1, June 2022, Q11Explain15 marks

Explain the difference between complete and partial market failure.

Examiner insight

What to cover: Complete failure: the market does not exist, as with public goods that are non-excludable and non-rival (free-rider problem). Partial failure: the market exists but gives the wrong quantity or price, as with externalities, merit and demerit goods, and monopoly.
Watch out: Give a clear example of each and explain why the market fails in that way.

Question paper p.6 Mark scheme p.18 Examiner report p.6 Marked student answers p.52 Open in the tool

A-level Paper 1, June 2022, Q12Evaluate25 marks

Evaluate the view that government failure means that government intervention in markets will rarely lead to an improvement in economic welfare.

Examiner insight

What to cover: Government failure: imperfect information, unintended consequences, administrative cost, regulatory capture, political short-termism.
Watch out: Use real examples of both successful and failed intervention.

Question paper p.6 Mark scheme p.19 Examiner report p.7 Marked student answers p.58 Open in the tool

A-level Paper 1, November 2020, Q9Explain15 marks

Explain how the imposition of a tax on a good or service affects both consumer surplus and producer surplus.

Examiner insight

What to cover: A tax raises price for consumers and lowers price received by producers. Both surpluses fall and there is deadweight loss.
Watch out: Label all the areas. This question is mainly diagram skill.

Question paper p.6 Mark scheme p.16 Examiner report p.4 Open in the tool Practise the indirect tax diagram Practise the supply and demand diagram

A-level Paper 1, June 2019, Q13Explain15 marks

Explain how the impact of a minimum price for a good or service is affected by its price elasticity of demand and its price elasticity of supply.

Examiner insight

What to cover: With inelastic demand and supply, a minimum price causes a small surplus. With elastic demand and supply, the surplus is large.
Watch out: Compare the size of excess supply on both diagrams.

Question paper p.7 Mark scheme p.20 Open in the tool Practise the minimum price diagram

A-level Paper 1, June 2018, Q9Explain15 marks

Explain why the use of petrol and diesel cars may be a source of market failure.

Examiner insight

What to cover: Cars cause negative externalities (pollution, congestion, carbon) and drivers lack full information, so the market over-consumes car use.
Watch out: Explain why the market fails, not only that pollution is bad.

Question paper p.6 Mark scheme p.17 Open in the tool

A-level Paper 1, June 2018, Q10Assess25 marks

Assess the view that regulation is a better policy for dealing with the problem of air pollution than the allocation of property rights or taxation.

Examiner insight

What to cover: Compare regulation (limits, bans), taxation (internalises cost) and property rights (tradable permits).
Watch out: The question lists three policies. You must weigh regulation against both others.

Question paper p.6 Mark scheme p.18 Open in the tool Practise the negative externality diagram

A-level Paper 1, June 2017, Q13Explain15 marks

Explain why, in a free market, sugary drinks may be overconsumed.

Examiner insight

What to cover: Sugary drinks are demerit goods with negative consumption externalities and imperfect information, so consumption exceeds the social optimum.
Watch out: Use the right curves: in consumption the gap is between private and social benefit, not cost.

Question paper p.7 Mark scheme p.21 Open in the tool Practise the negative externality diagram

A-level Paper 1, June 2017, Q14Evaluate25 marks

Evaluate the view that imposing a tax is the most effective government policy for reducing the market failures arising from overconsumption of unhealthy food and drink.

Examiner insight

What to cover: A tax raises price and reduces consumption towards the social optimum.
Watch out: Show that tax effectiveness depends on price elasticity of demand.

Question paper p.7 Mark scheme p.22 Open in the tool Practise the indirect tax diagram Practise the negative externality diagram

A-level Paper 1, Specimen, Q13Explain15 marks

Explain why, in the absence of government intervention, too many journeys are likely to be made by road and too few by rail.

Examiner insight

What to cover: Road users ignore external costs (congestion, pollution, accidents), so private cost is below social cost. Rail has external benefits that users do not count.
Watch out: Name the external costs precisely and link them to over-consumption. Do not drift into policy.

Question paper p.6 Mark scheme p.18 Open in the tool Practise the negative externality diagram Practise the positive externality diagram

A-level Paper 1, Specimen, Q14Assess25 marks

Assess the view that a system of road-pricing is the best way to tackle the problem of worsening traffic congestion in the UK.

Examiner insight

What to cover: Explain how road pricing makes users pay the external cost and moves output towards the social optimum.
Watch out: Do not assume the charge can be set exactly. Valuing external costs is hard, which is a key evaluation point.

Question paper p.6 Mark scheme p.19 Open in the tool Practise the negative externality diagram

Data response questions on market failure and government intervention

A-level Paper 1, June 2025, Q4Evaluate25 marks

Context 1: The international rice market

Extract C (lines 6–7) states: ‘An alternative would be to impose a maximum price for consumers, as both Sri Lanka and the Philippines have done’. Using the data and your knowledge of economics, evaluate the view that imposing a maximum price for rice is the best way for a rice-importing nation, such as Nigeria, to ensure the affordability of a basic food for its citizens.

Examiner insight

What to cover: A maximum price keeps rice affordable for consumers.
Watch out: Use the data on Nigeria and other countries.

Question paper p.3 Mark scheme p.9 Examiner report p.5 Open in the tool Practise the maximum price diagram

A-level Paper 1, June 2025, Q5Calculate2 marks

Context 2: The UK water industry

Using the data in Extract D (Figure 3), calculate the median number of storm overflow hours by water company in 2022.

Question paper p.5 Mark scheme p.10 Examiner report p.5 Open in the tool

A-level Paper 3, June 2025, Q33Recommend25 marks

Case study: The UK automotive industry

After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the Government continue to subsidise firms to encourage them to set up gigafactories to produce batteries in the UK? Justify your recommendation.

Examiner insight

What to cover: Subsidies can attract investment, jobs and future supply chains (infant industry).
Watch out: Recommendation with conditions.

Question paper p.34 Mark scheme p.10 Insert p.3 Examiner report p.7 Open in the tool Practise the subsidy diagram

AS Paper 1, June 2025, Q22Calculate4 marks

Context 1: Flood defences

Extract A shows the capital expenditure on flood defences by region in England, 2015 to 2021, split between ‘Local government levy’ and ‘Other’. Calculate the difference between the mean and median amounts of capital expenditure paid for by the local government levy in the regions of England for the period 2015 to 2021. Give your answer in £m to one decimal place.

Question paper p.14 Mark scheme p.7 Insert p.1 Open in the tool

AS Paper 1, June 2025, Q23Identify4 marks

Context 1: Flood defences

Use Extract A to identify two significant points of comparison between the amount of capital expenditure on flood defences that is financed by the local government levy and the amount that is financed by other sources.

Question paper p.15 Mark scheme p.8 Insert p.1 Open in the tool

AS Paper 1, June 2025, Q26Evaluate25 marks

Context 1: Flood defences

Extract B (lines 7–8) states: ‘Between 2010 and 2015, the UK government spent over £1.7bn to protect about 250 000 homes, 28 000 business properties and 800 000 acres of farmland.’ Use the extracts and your knowledge of economics to evaluate whether government should be solely responsible for paying for flood defences.

Examiner insight

What to cover: Flood defences are public goods (non-rival, non-excludable), so the market under-provides them.
Watch out: Use the extracts.

Question paper p.19 Mark scheme p.12 Insert p.1 Open in the tool

AS Paper 1, June 2025, Q32Evaluate25 marks

Context 2: Coffee

Extract F (lines 1–2) states: ‘There are various markets for coffee at different stages of the production and consumption process, and at local and global levels.’ Use the extracts and your knowledge of economics to evaluate whether or not governments should intervene in the various markets for coffee.

Examiner insight

What to cover: Coffee markets have price volatility, low farm incomes and possible market power.
Watch out: Use the extracts.

Question paper p.29 Mark scheme p.18 Insert p.1 Open in the tool

A-level Paper 1, June 2024, Q4Discuss25 marks

Context 1: The market for university accommodation

Extract C (lines 14–16) states that ‘A maximum rent can help keep the cost of student accommodation lower than it would otherwise be, but risks some landlords withdrawing from the market’. Using the data in the extracts and your knowledge of economics, discuss the advantages and disadvantages of policies the government might introduce to improve the market for student accommodation.

Examiner insight

What to cover: Policies: a maximum rent, subsidies for purpose-built housing, relaxing planning rules, direct university provision, regulation of standards.
Watch out: Discuss both advantages and disadvantages of each policy.

Question paper p.3 Mark scheme p.9 Examiner report p.5 Open in the tool Draw it: supply and demand diagram Or: maximum price diagram

AS Paper 1, June 2024, Q22Calculate4 marks

Context 1: Tourism in the UK

Extract C (lines 4–7) states: ‘Since 2011, tourists staying in a five-star hotel in the peak season have been taxed €5 for each night. However, they are only charged for five nights, even if they stay longer. They pay 50% less in the off-peak season.’ Calculate the total amount of tax paid by two people staying for seven nights in a five-star hotel in the off-peak season.

Question paper p.14 Mark scheme p.7 Insert p.1 Open in the tool

AS Paper 1, June 2024, Q26Discuss25 marks

Context 1: Tourism in the UK

Extract C (lines 13–14) states: ‘In recent years, with more people holidaying in the UK, some tourist sites have been overwhelmed by visitors.’ Use the extracts and your knowledge of economics to discuss whether there should be more state intervention to limit tourism in the UK.

Examiner insight

What to cover: Tourism causes congestion, pollution and damage at popular sites: external costs.
Watch out: Use the extracts on overwhelmed sites.

Question paper p.19 Mark scheme p.11 Insert p.1 Open in the tool

AS Paper 1, June 2024, Q29Identify4 marks

Context 2: Eye care in the UK

Use Extract D to identify two significant features of the number of National Health Service (NHS) sight tests in England over the period shown.

Question paper p.25 Mark scheme p.14 Insert p.1 Open in the tool

AS Paper 1, June 2024, Q32Discuss25 marks

Context 2: Eye care in the UK

Extract F (lines 18–19) states: ‘Should the government prioritise reducing the waiting list of people who need urgent eye treatment or are there more important issues?’ Use the extracts and your knowledge of economics to discuss whether the government should increase its spending to improve eye health in the UK.

Examiner insight

What to cover: Eye care is a merit good with external benefits (productivity, road safety).
Watch out: Use the extracts.

Question paper p.29 Mark scheme p.17 Insert p.1 Open in the tool

A-level Paper 1, June 2023, Q1Calculate2 marks

Context 1: Electric cars and battery production

Using the data in Extract A (Table 1), calculate the index of total car sales in 2021 if, in the base year, total car sales were 1.25 million. Give your answer to two decimal places.

Question paper p.3 Mark scheme p.5 Examiner report p.3 Open in the tool

A-level Paper 1, June 2023, Q3Explain9 marks

Context 1: Electric cars and battery production

Extract C (lines 3–4) states that ‘the mining, manufacturing and disposal process for batteries could soon become an environmental disaster.’ With the help of a diagram, explain why the production and sale of lithium-ion batteries might lead to market failure.

Examiner insight

What to cover: Battery mining, manufacturing and disposal create pollution and health damage for third parties. These external costs are not paid by producers or consumers, so output is above the social optimum.
Watch out: Use the extract's examples of cobalt mining and disposal.

Question paper p.3 Mark scheme p.7 Examiner report p.4 Open in the tool Draw it: negative externality diagram

A-level Paper 1, June 2023, Q4Evaluate25 marks

Context 1: Electric cars and battery production

Extract B (lines 20–21) states that ‘all vehicle owners should be forced to pay the full costs of their driving. This would incentivise people to consider using public transport, cycling or walking.’ Evaluate policies that could be used to reduce the environmental impact of all types of car.

Examiner insight

What to cover: Policies: fuel duty, road pricing, vehicle tax by emissions, regulation of emissions, subsidies for public transport, charging zones, battery recycling rules.
Watch out: The question covers all cars, not only electric cars.

Question paper p.3 Mark scheme p.9 Examiner report p.4 Open in the tool

AS Paper 1, June 2023, Q26Evaluate25 marks

Context 1: Oil

Extract C (lines 20–21) states: ‘Unstable prices, monopoly power, environmental concerns and a vital resource – should governments intervene more in the oil industry?’ Use the extracts and your knowledge of economics to evaluate ways in which governments could deal with the market failures in the oil industry.

Examiner insight

What to cover: Oil market failures: monopoly power (OPEC), external costs, price volatility and a finite resource.
Watch out: Use the extracts.

Question paper p.18 Mark scheme p.11 Insert p.1 Open in the tool Practise the negative externality diagram

AS Paper 1, June 2023, Q30Draw4 marks

Context 2: Drones

Use the data in Extract D (ii) to draw a bar chart to show the number of near misses between drones and planes in the UK for the years 2014, 2016 and 2018.

Question paper p.25 Mark scheme p.15 Insert p.1 Open in the tool

AS Paper 1, June 2023, Q32Assess25 marks

Context 2: Drones

Extract F (lines 23–24) states: ‘if drones become more common, another review may be needed of what is best for all’. Use the extracts and your knowledge of economics to assess whether governments should encourage, discourage or do nothing more to affect the use of drones.

Examiner insight

What to cover: Drones bring lower costs and faster delivery, but external costs (noise, safety, privacy).
Watch out: Consider all three options.

Question paper p.28 Mark scheme p.17 Insert p.1 Open in the tool

A-level Paper 3, June 2022, Q33Recommend25 marks

Case study: The commercial aircraft manufacturing industry

After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the UK government provides financial and other support to companies involved in the production of commercial aircraft? Justify your recommendation.

Examiner insight

What to cover: Case for support: high-skill jobs, exports, R&D externalities, competition with subsidised rivals.
Watch out: Recommendation with conditions.

Question paper p.28 Mark scheme p.11 Insert p.3 Examiner report p.8 Marked student answers p.25 Open in the tool

AS Paper 1, June 2022, Q24Draw4 marks

Context 1: Water

Extract C (line 20) states: ‘Perhaps a maximum price should be set for water’. Draw a diagram to show the impact on the market for water of setting a maximum price below the equilibrium.

Question paper p.15 Mark scheme p.9 Insert p.1 Open in the tool Draw it: maximum price diagram

AS Paper 1, June 2022, Q26Assess25 marks

Context 1: Water

Extract C (line 9) states: ‘When people pay according to quantity used, they are less likely to be wasteful’. Use the extracts and your knowledge of economics to assess whether all households should pay according to the amount of water they use.

Examiner insight

What to cover: Metering means people pay for what they use, so waste falls.
Watch out: Use the extracts on metered and unmetered use.

Question paper p.18 Mark scheme p.11 Insert p.1 Open in the tool

AS Paper 1, June 2022, Q30Draw4 marks

Context 2: Alcohol

Extract E (lines 2–3) states: ‘The minimum age for buying alcohol is 18, although in some countries, such as the US, the minimum age is 21’. Draw a diagram to show the impact on the market for alcohol of raising the age for buying alcohol in the UK from 18 to 21.

Question paper p.25 Mark scheme p.15 Insert p.1 Open in the tool Draw it: supply and demand diagram

AS Paper 1, June 2022, Q31Explain10 marks

Context 2: Alcohol

Extract E (lines 1–2) states: ‘alcohol has traditionally been viewed as a demerit good, subject to high indirect taxes’. Explain the likely effects of imposing indirect taxes on alcohol.

Examiner insight

What to cover: A tax raises the price of alcohol, so consumption falls. Demand is price inelastic, so revenue is high but the fall in consumption is small.
Watch out: Use price elasticity of demand.

Question paper p.26 Mark scheme p.16 Insert p.1 Open in the tool Practise the indirect tax diagram

AS Paper 1, June 2022, Q32Assess25 marks

Context 2: Alcohol

Extract F (lines 20–21) states: ‘Cheap alcohol is wrecking lives and livelihoods in England as well as Scotland’. Use the extracts and your knowledge of economics to assess whether a minimum price for alcohol should be introduced in England and Northern Ireland.

Examiner insight

What to cover: A minimum unit price raises the price of cheap alcohol, reducing consumption by heavy drinkers.
Watch out: Use the extracts on Scotland.

Question paper p.28 Mark scheme p.17 Insert p.1 Open in the tool Practise the minimum price diagram

A-level Paper 3, November 2021, Q31To what extent10 marks

Case study: Climate change – it is not too late

The UK government has set a target to reduce net greenhouse gas (GHG) emissions to zero by 2050. To what extent, if at all, do the data suggest that to achieve its net-zero emissions target, the government should focus on reducing GHG emissions from the transport sector? You must use the data in Extract C to support your assessment.

Examiner insight

What to cover: Use sector data to judge whether transport is the biggest source of emissions and how fast each sector is falling.
Watch out: Quote numbers from Extract C.

Question paper p.21 Mark scheme p.5 Insert p.3 Open in the tool Practise the negative externality diagram

A-level Paper 3, November 2021, Q32Explain15 marks

Case study: Climate change – it is not too late

Explain why, without government intervention, markets are likely to allocate too few resources to dealing with the problem of climate change.

Examiner insight

What to cover: Climate change is a negative externality and a global public good problem. Free riders and missing markets mean too few resources.
Watch out: Explain the free-rider problem and the global nature of the issue.

Question paper p.25 Mark scheme p.7 Insert p.3 Open in the tool Practise the negative externality diagram

A-level Paper 3, November 2021, Q33Recommend25 marks

Case study: Climate change – it is not too late

After considering Extract E, and the original evidence in Extracts A, B, C and D, which policies, if any, would you recommend that the UK government should introduce to ensure that it achieves its zero-emissions target by 2050. Justify your recommendation.

Examiner insight

What to cover: Policies: carbon tax, tradable permits, regulation, subsidies for renewables, nudges.
Watch out: Recommend specific policies with reasons.

Question paper p.30 Mark scheme p.8 Insert p.3 Open in the tool Practise the negative externality diagram

A-level Paper 1, November 2020, Q1Calculate2 marks

Context 1: The circular economy

Using the data in Extract A (Figure 1) calculate the percentage of all plastics produced in the period 1950–2015 which have either been sent to landfill or incinerated. Give your answer to one decimal place.

Question paper p.3 Mark scheme p.5 Examiner report p.3 Open in the tool

A-level Paper 1, November 2020, Q2Explain4 marks

Context 1: The circular economy

Explain how the data in Extract A (Figure 2) show that higher living standards lead to greater volumes of waste per capita being produced.

Question paper p.3 Mark scheme p.6 Examiner report p.3 Open in the tool

A-level Paper 1, November 2020, Q3Explain9 marks

Context 1: The circular economy

Extract B (lines 8–10) states: ‘many companies intentionally make it difficult to repair their products in order to increase sales. This is both economically inefficient and environmentally foolish; it imposes costs on the environment even though it may make sense for individual companies.’ With the help of a diagram, explain how the production of goods which are designed not to last long may result in market failure.

Examiner insight

What to cover: Goods built to fail create more waste. Landfill, pollution and resource use are external costs that producers do not pay, so output of short-life goods is above the social optimum. Consumers also lack information about product life.
Watch out: Name the external cost precisely and show the welfare loss. Imperfect information is a useful second strand.

Question paper p.3 Mark scheme p.7 Examiner report p.4 Open in the tool Draw it: negative externality diagram

A-level Paper 1, November 2020, Q4Evaluate25 marks

Context 1: The circular economy

Extract C (lines 17–19) states: ‘Many environmental economists suggest that making firms pay for the costs of landfill associated with their products, or taxing raw material inputs, will be necessary to ensure a sustainable future for all.’ Using the extracts and your knowledge of economics, evaluate policies, if any, that governments in developed countries should pursue to reduce waste and encourage the recycling of waste products.

Examiner insight

What to cover: Policies: landfill tax, deposit return schemes, regulation, extended producer responsibility, subsidies for recycling.
Watch out: Use the extracts. Make a clear judgement about which policy is best.

Question paper p.3 Mark scheme p.9 Examiner report p.4 Open in the tool

A-level Paper 1, November 2020, Q8Assess25 marks

Context 2: The adult social care market

Extract F (lines 1–3) states: ‘There are aspects of market failure in the social care sector, though some argue that inappropriate government intervention and a lack of funding are the main reasons why the system is failing to deliver high quality care.’ Using the extracts and your knowledge of economics, assess policies that might be used to improve the provision of social care in the UK.

Examiner insight

What to cover: Market failures in social care: merit good, imperfect information, monopsony pay, low profit margins. Policies: more public funding, higher pay for care workers, regulation of quality, integration with the NHS, insurance schemes.
Watch out: Link every policy to a named failure, and use the extract on inappropriate intervention.

Question paper p.5 Mark scheme p.14 Examiner report p.4 Open in the tool

AS Paper 1, June 2020, Q22Calculate4 marks

Context 1: Bus travel

Use Extract A to calculate the difference in the median male and female take-up rates of concessionary travel schemes for the elderly in England for the years shown.

Question paper p.12 Mark scheme p.7 Insert p.1 Open in the tool

AS Paper 1, June 2020, Q23Identify4 marks

Context 1: Bus travel

Use Extract A to identify two significant points of comparison between the take-up of concessionary travel schemes by males and females in England over the period shown.

Question paper p.12 Mark scheme p.8 Insert p.1 Open in the tool

AS Paper 1, June 2020, Q26Evaluate25 marks

Context 1: Bus travel

Extract C (lines 16–17) states: ‘Perhaps the time has come to stop free bus travel for the elderly or to limit it to certain groups?’ Use the extracts and your knowledge of economics to evaluate whether the UK government should continue to provide free bus travel for all, some or no elderly people.

Examiner insight

What to cover: Free bus travel has external benefits (less congestion, less isolation) and helps pensioners.
Watch out: Consider all three options.

Question paper p.16 Mark scheme p.11 Insert p.1 Open in the tool

AS Paper 1, June 2020, Q27Define3 marks

Context 2: E-cigarettes

Define ‘social cost’ in Extract E (line 7).

Question paper p.21 Mark scheme p.12 Insert p.1 Open in the tool

AS Paper 1, June 2020, Q28Calculate4 marks

Context 2: E-cigarettes

Use Extract D to calculate, to one decimal place, the difference between the mean male and female rates of cigarette smoking in Great Britain for the years shown.

Question paper p.21 Mark scheme p.13 Insert p.1 Open in the tool

AS Paper 1, June 2020, Q29Identify4 marks

Context 2: E-cigarettes

Use Extract D to identify two significant points of comparison between the rates of cigarette smoking of males and females in Great Britain over the period shown.

Question paper p.22 Mark scheme p.14 Insert p.1 Open in the tool

AS Paper 1, June 2020, Q32Evaluate25 marks

Context 2: E-cigarettes

Extract F (lines 17–19) states: ‘Should the UK government promote a particular brand of e-cigarettes as a ‘healthy alternative’ to conventional cigarettes? Should the use of e-cigarettes be discouraged or has government intervention already gone far enough?’ Use the extracts and your knowledge of economics to evaluate whether the UK government should encourage, discourage or do nothing more to affect the use of e-cigarettes.

Examiner insight

What to cover: E-cigarettes may cut harm from smoking and reduce health costs.
Watch out: Consider all three options.

Question paper p.26 Mark scheme p.17 Insert p.1 Open in the tool

A-level Paper 1, June 2019, Q4Assess25 marks

Context 1: The market for sand

Extract C (lines 14–15) states that ‘Rising prices will eventually also force builders in developing countries to explore alternatives to sand.’ Use the extracts and your knowledge of economics to assess the view that the increasing scarcity of sand is a problem best solved by market forces, rather than through government intervention.

Examiner insight

What to cover: Market forces: rising price rations sand and creates incentives for substitutes and recycling.
Watch out: Link the scarcity to externalities and the tragedy of the commons for the top level.

Question paper p.3 Mark scheme p.9 Open in the tool Practise the supply and demand diagram

AS Paper 1, June 2019, Q26Evaluate25 marks

Context 1: Palm oil

Extract B (lines 18–19) states: ‘the palm oil industry has much to offer to both consumers and producers in a variety of industries.’ Use the extracts and your knowledge of economics to evaluate whether more should be done to control the palm oil industry.

Examiner insight

What to cover: Palm oil production causes deforestation, loss of habitat and carbon emissions: external costs.
Watch out: Use the extracts on certified sustainable palm oil.

Question paper p.18 Mark scheme p.11 Insert p.1 Open in the tool

AS Paper 1, June 2019, Q28Calculate4 marks

Context 2: Dental care

Extract F (line 6) states: ‘Currently, about 60 000 people are admitted to hospital each year because of tooth decay...’ If the population increases by 2.25% in the following year, other things being equal, calculate, to the nearest child, the number of children expected to be admitted to hospital because of tooth decay.

Question paper p.23 Mark scheme p.13 Insert p.1 Open in the tool

AS Paper 1, June 2019, Q29Identify4 marks

Context 2: Dental care

Use Extract D to identify two significant features of the number of courses of dental treatment (CoT) per 100 000 population in 2016–17.

Question paper p.24 Mark scheme p.14 Insert p.1 Open in the tool

AS Paper 1, June 2019, Q32Evaluate25 marks

Context 2: Dental care

Extract F (lines 19–20) states: ‘is there a need for the government to take more action to improve dental health in the UK, and if so, what should be done?’ Use the extracts and your knowledge of economics to evaluate whether the UK government should take more action to improve dental health in the UK.

Examiner insight

What to cover: Dental care is a merit good with imperfect information and external benefits.
Watch out: Use the extracts.

Question paper p.28 Mark scheme p.17 Insert p.1 Open in the tool

AS Paper 1, June 2018, Q21Define3 marks

Context 1: Libraries

Define ‘public good’ Extract C (line 18).

Question paper p.12 Mark scheme p.6 Insert p.1 Open in the tool

AS Paper 1, June 2018, Q22Calculate4 marks

Context 1: Libraries

Extract C (lines 11–13) states: ‘A relatively small amount ... was spent on libraries in England in 2014/15.’ If the population of England in 2014/15 was 54.5 million, calculate, to the nearest pound, the amount spent on libraries per person.

Question paper p.13 Mark scheme p.7 Insert p.1 Open in the tool

AS Paper 1, June 2018, Q26Assess25 marks

Context 1: Libraries

Extract C (line 10) states: ‘Faced with funding cuts, local authorities have to make difficult choices’. Use the extracts and your knowledge of economics to assess whether local authorities should continue to provide public libraries.

Examiner insight

What to cover: Libraries are quasi-public and merit goods with external benefits (literacy, community).
Watch out: Use the extracts on funding cuts.

Question paper p.18 Mark scheme p.11 Insert p.1 Open in the tool

AS Paper 1, June 2018, Q27Define3 marks

Context 2: Agriculture

Define ‘minimum price’ Extract E (line 6).

Question paper p.23 Mark scheme p.12 Insert p.1 Open in the tool

AS Paper 1, June 2018, Q32To what extent25 marks

Context 2: Agriculture

Extract F (lines 18–19) states: ‘Should the UK government take an active role in agriculture, and if so, what policies should it implement?’ Use the extracts and your knowledge of economics to assess to what extent, if at all, the UK government should intervene in the agricultural sector.

Examiner insight

What to cover: Agriculture has volatile prices, inelastic supply and demand, and external costs and benefits.
Watch out: Use the extracts on UK agriculture.

Question paper p.28 Mark scheme p.17 Insert p.1 Open in the tool

A-level Paper 3, June 2017, Q33Recommend25 marks

Case study: The march of the makers – does manufacturing matter?

Taking into account Extract D, and the original evidence presented in Extracts A, B and C, would you recommend that the government should intervene to support the UK steel industry? Justify your recommendation.

Examiner insight

What to cover: Arguments for support: jobs, strategic industry, externalities, regional effects. Against: cost, inefficiency, WTO rules, government failure.
Watch out: Clear recommendation with conditions.

Question paper p.25 Mark scheme p.9 Insert p.2 Open in the tool

AS Paper 1, June 2017, Q27Define3 marks

Context 2: Gambling

Define ‘external costs’ Extract F (line 18).

Question paper p.23 Mark scheme p.12 Insert p.1 Open in the tool

AS Paper 1, June 2017, Q28Calculate4 marks

Context 2: Gambling

Use Extract E to calculate, to one decimal place, the percentage change in the number of workers in the gambling sector between 2011 and 2015.

Question paper p.23 Mark scheme p.13 Insert p.1 Open in the tool

AS Paper 1, June 2017, Q32Assess25 marks

Context 2: Gambling

Extract F (lines 17–18) states ‘should there be more regulations or taxes to try to reduce the effects of gambling, in terms of both its private and external costs?’ Use the extracts and your knowledge of economics to assess whether the UK government should intervene more in the gambling industry.

Examiner insight

What to cover: Gambling is a demerit good with external costs (debt, crime, family harm) and imperfect information.
Watch out: Use the extracts on private and external costs.

Question paper p.28 Mark scheme p.17 Insert p.1 Open in the tool Practise the negative externality diagram

AS Paper 1, June 2016, Q21Define3 marks

Context 1: The UK housing market

Define the term ‘government failure’ Extract C (lines 20 and 21).

Question paper p.12 Mark scheme p.6 Insert p.1 Open in the tool

AS Paper 1, June 2016, Q22Calculate4 marks

Context 1: The UK housing market

Use Extract C to calculate, to the nearest whole number, the estimated number of people sleeping on the streets in England on any one night in 2010.

Question paper p.13 Mark scheme p.7 Insert p.1 Open in the tool

AS Paper 1, June 2016, Q24Draw4 marks

Context 1: The UK housing market

Extract C (lines 17 to 19) states ‘Some economists have suggested the implementation of maximum price controls on rented accommodation that prevent landlords from charging the market rent.’ Draw a diagram to show the effects of implementing this suggestion on the market for rented accommodation.

Question paper p.14 Mark scheme p.9 Insert p.1 Open in the tool Draw it: maximum price diagram

AS Paper 1, June 2016, Q26Assess25 marks

Context 1: The UK housing market

Extract C (lines 20 and 21) states ‘Some are mindful of government failure and advocate a lesser role for governments.’ Use the extracts and your knowledge of economics to assess the view that housing markets should be left to market forces with only the minimum of intervention from governments.