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).
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.