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4 marksMarket Failure

CAPE Economics Unit 1 · 2021 · Paper 2 · Question 2(b)(i)

Distinguish between 'private benefits' and 'external benefits'.

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Other parts of this question

  1. 2(a)(i)Define the term 'economic loss'.[2 marks]
  2. 2(a)(ii)Define the term 'abnormal profit'.[2 marks]
  3. 2(b)(ii)Explain what is meant by the term 'merit good' and state an example of a merit good.[5 marks]
  4. 2(c)(i)Discuss how Caribbean governments could use legislation to control the externalities arising from overfishing.[4 marks]
  5. 2(c)(ii)Discuss how Caribbean governments could use taxation to control the externalities arising from overfishing.[4 marks]
  6. 2(c)(iii)Discuss how Caribbean governments could use quotas to control the externalities arising from overfishing.[4 marks]

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