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CAIE IGCSE Economics 2.9.2 Definitions of Terms Associated with Market Failure Questions

Practise Cambridge IGCSE Economics by analysing external benefits and costs, different goods and government responses to market failure.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Explain external benefits and costs as causes of market failure.
  • Distinguish merit, demerit, public and private goods.
  • Apply market-failure concepts to government intervention and cost-benefit decisions.

CAIE IGCSE Economics 2.9.2 Definitions of Terms Associated with Market Failure Questions question 1

[Maximum number: 1]

A bridge is built over a river which enables journey times to be reduced.
The table shows costs and benefits of building the bridge.

Table for Question CAIE IGCSE Economics 2.9.2 Definitions of Terms Associated with Market Failure Questions question 1 — CAIE IGCSE Economics

Which calculation represents social benefit?

A

$ 12000-$ 10000=$ 2000

B

$ 8000-$ 5000=$ 3000

C

$ 12000+$ 5000=$ 17000

D

$ 8000+$ 12000=$ 20000

All question bank results loaded