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Question 21M.1.SL.TZ2.a

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Date May 2021 Marks available [Maximum mark: 10] Reference code 21M.1.SL.TZ2.a
Level SL Paper 1 Time zone TZ2
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
21M.1.SL.TZ2.a

Explain the concept of positive externalities of consumption.

[10]

Markscheme

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

Answers may include:

  • definitions of externalities, positive externalities of consumption
  • diagram to illustrate positive externalities of consumption
  • explanation of positive externalities of consumption in terms of MSB being greater than MPB
  • examples of positive externalities of consumption in practice.
Examiners report

There were plenty of good answers to this question. Effective responses showed a clear understanding of the positive externalities of consumption, using examples from areas such as healthcare and education. Responses were generally well illustrated by using cost/benefit diagrams to show the associated market failure. The strongest answers localised their examples to specific situations with many effective points made about the positive externalities of vaccines. 

Syllabus sections