IB Economics 2.9 Market Failure - Public Goods Questionbank

Explain how the free-rider problem prevents voluntary contributions from being a reliable means of financing public goods.

Discuss 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.

Outline the characteristics of public goods and explain why they are considered a form of market failure.

Discuss 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.

Using a diagram, explain why the free-rider problem leads to under-provision of public goods in a free market.

Evaluate the effectiveness of government intervention in ensuring the adequate provision of public goods such as national defence and basic infrastructure, using real-world examples.

Distinguish between public goods and merit goods, with reference to specific examples.

Evaluate the view that government provision of healthcare and education is best justified by their public good characteristics, using real-world examples.

Explain why governments may systematically under-provide certain public goods even when they have the legal authority to overcome the free-rider problem.

To what extent is government failure a more serious obstacle to the provision of public goods than market failure? Use real-world examples.