CAIE A-Level Economics 3.1.1 Public Goods Non-provision

Practise using non-excludability, non-rivalry and free riding to explain why markets may not provide public goods and why governments finance direct provision.

Exam points

identify non-excludability and non-rivalry as the defining features of a public good
explain how free riding prevents firms from charging users and creates market non-provision
apply government finance or direct provision to flood defences while recognising opportunity cost

[Maximum number: 1]

A government wishes to ensure adequate flood defences are provided in its coastal areas.
Which action is most likely to be undertaken only by the government?

building the defences

designing the defences

financing the defences

maintaining the defences

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3.1.1—Public goods non-provision question 1