plumiMarket failure and externalities: OCR A‑Level Economics questions
Every OCR A-Level Economics exam question on 2.8 Market failure and externalities, 2021–2025, with its mark scheme and examiner’s report.
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Q1(a)(i)
The whole paper ↗![June 2025 Paper 1, question 1(a)(i): Using information from the stimulus material, explain the term external costs. [2]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/h46001-jun25-01-ai-qp.webp)
Q1(d)
The whole paper ↗
![June 2025 AS Paper 1, question 9: What is an example of market failure? A Buffer Scheme B Pollution C Subsidies D Taxes [1]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/h06001-jun25-09-qp.webp)
Your answerQ16(a)
The whole paper ↗![June 2025 AS Paper 1, question 16(a): Using Fig. 1, state which form of road transport had the greatest percentage fall in greenhouse gas emissions between 1992 and 2022. [1]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/h06001-jun25-16-a-qp.webp)
Q16(e)
The whole paper ↗![June 2025 AS Paper 1, question 16(e): (e)* Evaluate, using an appropriate diagram, the effect of an increase in demand for electric cars on people in the Democratic Republic of the Congo. [10]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/h06001-jun25-16-e-qp.webp)
![June 2024 AS Paper 1, question 1: Which is a positive externality of a new factory being built in a town? A Air pollution B Employment C Noise D Traffic congestion [1]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/h06001-jun24-01-qp.webp)
Your answer
Your answer
![June 2023 Paper 3, question 31: Explain, using the information in Extract 1, why private car journeys may be overconsumed in the free market. [2]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/h46003-jun23-e1-31-qp.webp)
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Your answer
Q1(b)
The whole paper ↗
Your answer
Your answerQ16(c)
The whole paper ↗![June 2022 AS Paper 1, question 16(c): Using a diagram, explain the costs experienced by the residents of Lancashire due to the extraction of shale gas. [4]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/h06001-jun22-16-c-qp.webp)
Your answer
All 18 questions on Market failure and externalities, as a list
- June 2025, Paper 1, Q1(a)(i) (2 marks): Using information from the stimulus material, explain the term external costs. [2]
- June 2025, Paper 1, Q1(d) (8 marks): ‘Both the market power and the environmental impact of the water industry have been a topic of much debate in the UK recently.’ Lines 20–21. Evaluate, using evi
- June 2025, AS Paper 1, Q9 (1 mark): What is an example of market failure? A Buffer Scheme B Pollution C Subsidies D Taxes [1]
- June 2025, AS Paper 1, Q16(a) (1 mark): Using Fig. 1, state which form of road transport had the greatest percentage fall in greenhouse gas emissions between 1992 and 2022. [1]
- June 2025, AS Paper 1, Q16(e) (10 marks): (e)* Evaluate, using an appropriate diagram, the effect of an increase in demand for electric cars on people in the Democratic Republic of the Congo. [10]
- June 2024, Paper 1, Q3 (25 marks): 3* In March 2020 the Welsh Government introduced a minimum price for alcohol of £0.50 per unit. According to the minimum pricing formula in Wales, a 70 cl bottl
- June 2024, AS Paper 1, Q1 (1 mark): Which is a positive externality of a new factory being built in a town? A Air pollution B Employment C Noise D Traffic congestion [1]
- June 2024, AS Paper 1, Q12 (1 mark): The diagram shows the social and private costs of manufacturing chemicals. Benefits, costs, price MSC MPC X Z P1 Y P P2 MPB = MSB = D q1 Quantity q Which of the
- June 2023, Paper 1, Q3 (25 marks): 3* A report for the charity Action on Smoking and Health (ASH) in January 2022 estimated that smoking in England imposed costs on the NHS totalling £2.4 billion
- June 2023, Paper 3, Q31 (2 marks): Explain, using the information in Extract 1, why private car journeys may be overconsumed in the free market. [2]
- June 2023, AS Paper 1, Q8 (1 mark): Which of these is a cause of market failure? A Positive externalities B Positive income elasticity of demand C Positive price elasticity of supply D Positive pr
- June 2023, AS Paper 1, Q9 (1 mark): Which of these would lead to a negative externality? A A new firm which creates jobs for local people B A new firm which processes coal, releasing carbon emissi
- June 2023, AS Paper 1, Q17 (20 marks): 17* Palm oil companies have been destroying rainforests and habitat for wildlife because they want more land to grow palm oil trees. Around 24 million hectares
- June 2022, Paper 1, Q1(b) (4 marks): “…more taxes may be imposed to change the marginal private cost of using petrol cars, so that the price paid is closer to the marginal social cost inflicted on
- June 2022, Paper 3, Q29 (1 mark): The diagram shows the market for a good which is allocated in the free market without government intervention. What is represented by area XYZ? Price MPC = MSC
- June 2022, AS Paper 1, Q14 (1 mark): What are positive externalities? A Benefits gained by consumers when they buy a product B Benefits gained by governments from the production of a product C Bene
- June 2022, AS Paper 1, Q16(c) (4 marks): Using a diagram, explain the costs experienced by the residents of Lancashire due to the extraction of shale gas. [4]
- November 2021, Paper 3, Q12 (1 mark): What is marginal external cost equal to? A Marginal private cost – marginal social cost B Marginal social cost C Marginal social cost + marginal private cost D
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