Spec 7136
Revise AQA A Level Economics 1.8.4 Positive and negative externalities in consumption and production with the question bank, lessons, revision guides, and flashcards.
Externalities exist when there is a divergence between private and social costs and benefits. • Why negative externalities are likely to result in over-production and that positive externalities are likely to result in under-production. • Why the absence of property rights leads to externalities in both production and consumption and hence market failure.
