Cambridge International (CAIE) · 1 Basic economic ideas and resource allocation (AS) · 1.6 Classification of goods and services

Cambridge International (CAIE) Economics past paper questions: Classification of goods and services

Every Cambridge International (CAIE) question on Classification of goods and services from 2023 to 2025: 5 essays and 9 multiple choice questions. It covers 1.4 Resource allocation in different economic systems and 3.1 Reasons for government intervention in markets. Each question links to its paper, mark scheme and examiner report.

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Subtopics1.4 Resource allocation in different economic systems 43.1 Reasons for government intervention in markets 1

Essay questions on classification of goods and services

AS Paper 2, June 2025, Q2(a)OptionalExplain8 marks

With the help of examples, explain the difference between public goods and free goods and consider whether a market economy can ever produce public goods.

Question paper p.4 Mark scheme p.12 Open in the tool

AS Paper 2, March 2025, Q3(a)OptionalExplain8 marks

Explain the difference between a public good and a private good (economic good) and consider the extent to which a beach could be described as a public good.

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

AS Paper 2, June 2024, Q3(a)OptionalExplain8 marks

With the help of an example of each, explain the difference between a merit good and a demerit good and consider whether a subsidy given to a merit good will always be effective in increasing its consumption.

Question paper p.4 Mark scheme p.14 Open in the tool Practise the positive externality diagram Practise the subsidy diagram

AS Paper 2, March 2024, Q2(b)OptionalAssess12 marks

Assess whether the improved provision of information is likely to be the best method to reduce the consumption of demerit goods.

Question paper p.4 Mark scheme p.11 Open in the tool Practise the negative externality diagram

AS Paper 2, November 2023, Q3(a)OptionalExplain8 marks

With the help of examples, explain the difference between free goods and public goods and consider the view that public goods can never be provided in a market economy.

Question paper p.4 Mark scheme p.14 Examiner report p.12 Open in the tool

Multiple choice questions

AS Paper 1, November 2025, Q2
A public good must both be non-rivalrous in consumption and have the characteristic of non-excludability. Which situation meets both of these conditions?
AS Paper 1, June 2025, Q3
What is a statement of the non-rivalrous nature of public goods?
AS Paper 1, June 2025, Q13
Why might governments provide free education for children aged 4 to 16 years old?
AS Paper 1, June 2024, Q13
What is an example of a public good?
AS Paper 1, March 2024, Q4
What is the main reason an economy is unlikely to rely completely on market forces to allocate resources?
AS Paper 1, March 2024, Q13
What explains the underconsumption of merit goods?
AS Paper 1, November 2023, Q3
A new section of a road is provided toll-free by the government. What best describes this good?
AS Paper 1, November 2023, Q6
Some goods are over-consumed in a market economy. What is likely to be the cause of this?
AS Paper 1, March 2023, Q1
A good is most suitable to be provided by the market if it is

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Essay questions on classification of goods and services

Multiple choice questions

More Cambridge International (CAIE) topics: 1 Basic economic ideas and resource allocation (AS)