CAIE A-Level Economics 1.6.2 Public Goods

CAIE A-Level Economics 1.6.2 Public Goods
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise identifying public goods through non-rivalry and non-excludability and explaining free-rider under-provision, while evaluating borderline examples and technological…

How this is tested

  • apply both non-rivalry and non-excludability rather than relying on government provision
  • explain market under-provision because non-payers cannot be excluded and firms cannot capture benefits
  • evaluate borderline goods such as beaches when congestion, entry charges or technology change their properties

Question 2

[Maximum number: 1]

A public good must both be non-rivalrous in consumption and have the characteristic of non-excludability.

Which situation meets both of these conditions?

A

a former nationalised rail network which has been privatised

B

a good that has an opportunity cost

C

the building of a new toll road which charges all users the same toll

D

the provision of street lighting which improves a locality