OCR · Microeconomics · Market failure

OCR Economics past paper questions: Market failure

Every OCR question on Market failure from 2021 to 2025: 2 essays, 4 data response questions, 1 short answer question and 18 multiple choice questions. It covers Government intervention in markets, Aggregate demand, The economic problem and resource allocation, Demand, supply and elasticity and The financial sector. Each question links to its paper, mark scheme and examiner report.

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SubtopicsGovernment intervention in markets 7Aggregate demand 6The economic problem and resource allocation 4Demand, supply and elasticity 2The financial sector 2Competition policy and regulation 1Poverty and inequality 1Costs, revenues and profit 1Market structures 1

Essay questions on market failure

Data response questions on market failure

Short answer questions on market failure

Multiple choice questions

  1. AS Paper 1, June 2025, Q9

    What is an example of market failure?

  2. A-level Paper 3, June 2024, Q20

    Moral hazard is a situation where:

  3. AS Paper 1, June 2024, Q1

    Which is a positive externality of a new factory being built in a town?

  4. AS Paper 1, June 2024, Q12

    The diagram shows the social and private costs of manufacturing chemicals. Benefits, costs, price MSC X MPC P1 Z P Y P2 MPB = MSB = D q1 q Quantity Which of the statements is true?

  5. A-level Paper 3, June 2023, Q11

    What is one of the causes of government failure?

  6. A-level Paper 3, June 2023, Q12

    Which of the diagrams illustrates the impact of an increase in the Gini coefficient? Cumulative Pollution % of income P2 P1 0 Y1 Y2 Real 0 Cumulative GDP % of households A B Cumulative Pollution % of income P1 P2 0 Y1 Y2 Real 0 Cumulative…

  7. A-level Paper 3, June 2023, Q22

    An individual renting a car for a week's holiday can pay a premium of £85 to the car rental company. If they damage the car during the rental period they do not need to pay. Evidence suggests individuals are more likely to damage their…

  8. AS Paper 1, June 2023, Q8

    Which of these is a cause of market failure?

  9. AS Paper 1, June 2023, Q9

    Which of these would lead to a negative externality?

  10. A-level Paper 3, June 2022, Q7

    'There are insufficient resources to meet society's wants.' What does this statement describe?

  11. A-level Paper 3, June 2022, Q9

    What type of good is described as being excludable and rival?

  12. A-level Paper 3, June 2022, Q24

    Kai purchases a second-hand car for £12 000. However, they only derive £7000 utility from the car during the five years that they own it. What is likely to have occurred at the point of purchase to cause this?

  13. A-level Paper 3, June 2022, Q29

    The diagram shows the market for a good which is allocated in the free market without government intervention. What is represented by area XYZ? Price MPC = MSC Y X Z MSB MPB 0 Quantity

  14. AS Paper 1, June 2022, Q10

    When is productive efficiency achieved?

  15. AS Paper 1, June 2022, Q14

    What are positive externalities?

  16. A-level Paper 3, October 2021, Q6

    What is likely to be the most effective policy solution to overcome the market failure caused by the existence of positive externalities of production?

  17. A-level Paper 3, October 2021, Q12

    What is marginal external cost equal to?

  18. A-level Paper 3, October 2021, Q24

Question text is quoted from the question papers, © OCR (Oxford Cambridge and RSA), 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.