Question 19M.1.SL.TZ1.b
| Date | May 2019 | Marks available | [Maximum mark: 15] | Reference code | 19M.1.SL.TZ1.b |
| Level | SL | Paper | 1 | Time zone | TZ1 |
| Command term | Evaluate | Question number | b | Adapted from | N/A |
Evaluate the view that the most effective way in which the government can encourage the consumption of merit goods is through direct provision.
[15]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.
Answers may include:
- definition of merit goods, direct provision
- diagram: use of any relevant diagram, set in context, such as MSB/C, maximum price or a subsidy diagram
- explanation that direct provision could encourage greater consumption of merit goods
- examples of direct provision of merit goods eg education, healthcare, public transport
- synthesis and evaluation.
Evaluation may include: advantages and disadvantages of direct provision; consideration of alternatives such as maximum prices, subsidies, legislation, advertising, required private insurance in the case of health care.
NB A maximum of Level 3 should be awarded for responses that do not consider any alternatives to direct provision.
This question proved to be very problematic for several candidates who attempted it without having any clear understanding of the term “direct provision”. Most could not specifically explain what the term means. The term “merit goods” was widely understood, however, and examples of merit goods were readily provided. Several candidates were able to consider alternatives to direct provision, but the term was often confused with subsidies with the subsidy diagram being provided. It was not uncommon for candidates to devote lengthy, but largely irrelevant, discussion to demerit goods.
