UNIT ASSESSMENT
Edexcel A Level
Economics (A)
Unit Assessment
1.3 Market Failure
(Edition 1)
Time: 70 minutes
Maximum marks: 50
Name
Centre Name
, Edexcel A Level Economics (A)
Unit Assessment – 1.3 Market Failure
Section A
ANSWER ALL THE QUESTIONS
1a The socially optimum allocation of resources occurs when
A private costs equal private benefits. o
B supply equals demand. o
C social costs equal social benefits. o
D marginal costs equal marginal benefits. o
(1 mark)
1b Define the term ‘asymmetric information’
(1 mark)
1c It has been argued that young workers do not contribute sufficient amounts into their pensions as
they do not realise the positive impacts pensions can have on their futures. This is an example of
A positive externalities. o
B moral hazard. o
C under-provision of public goods. o
D information gaps. o
(1 mark)
1d Analyse one reason why some goods may not be provided by the private sector.
(3 marks)
Page 2 Edexcel A Level Economics (A) Unit Assessment www.tutor2u.net/economics
Edexcel A Level
Economics (A)
Unit Assessment
1.3 Market Failure
(Edition 1)
Time: 70 minutes
Maximum marks: 50
Name
Centre Name
, Edexcel A Level Economics (A)
Unit Assessment – 1.3 Market Failure
Section A
ANSWER ALL THE QUESTIONS
1a The socially optimum allocation of resources occurs when
A private costs equal private benefits. o
B supply equals demand. o
C social costs equal social benefits. o
D marginal costs equal marginal benefits. o
(1 mark)
1b Define the term ‘asymmetric information’
(1 mark)
1c It has been argued that young workers do not contribute sufficient amounts into their pensions as
they do not realise the positive impacts pensions can have on their futures. This is an example of
A positive externalities. o
B moral hazard. o
C under-provision of public goods. o
D information gaps. o
(1 mark)
1d Analyse one reason why some goods may not be provided by the private sector.
(3 marks)
Page 2 Edexcel A Level Economics (A) Unit Assessment www.tutor2u.net/economics
