Practice IB Economics Topic 2.9 Market Failure - Public Goods with authentic exam-style questions for both SL and HL students. This question bank focuses on the exact syllabus content for 2.9 Market Failure - Public Goods and mirrors Paper 1, 2, 3 style where relevant.
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(a) how the free-rider problem prevents voluntary contributions from being a reliable means of financing public goods.
(b) the view that mechanisms other than government taxation are unlikely to substantially overcome the free-rider problem in public good provision, using real-world examples.
(a) the characteristics of public goods and why they are considered a form of market failure.
(b) the view that direct provision by the government is the most effective way to address the market failure associated with public goods, using real-world examples.
(a) Using a diagram, why the free-rider problem leads to under-provision of public goods in a free market.
(b) the effectiveness of government intervention in ensuring the adequate provision of public goods such as national defence and basic infrastructure, using real-world examples.
(a) between public goods and merit goods, with reference to specific examples.
(b) the view that government provision of healthcare and education is best justified by their public good characteristics, using real-world examples.
(a) why governments may systematically under-provide certain public goods even when they have the legal authority to overcome the free-rider problem.
(b) is government failure a more serious obstacle to the provision of public goods than market failure? Use real-world examples.
