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1.8 The market mechanism, market failure and government intervention in markets

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Question 21

Extract B: The Environmental Impact of Fast Fashion

The rapid growth of the fast fashion industry has led to shorter clothing lifespans, resulting in millions of tonnes of garments ending up in landfills annually. While consumers enjoy cheap, trendy clothing, the apparel production processes generate significant external costs (line 6) such as toxic water pollution and high carbon emissions that are not factored into the retail price.

Define the term 'external cost' as referred to in Extract B (line 6).

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1.8 The market mechanism, market failure and government intervention in markets Questions

  1. A Level
  2. /Economics
  3. /1.8 The market mechanism, market failure and government intervention in markets