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Market failure and externalities

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Question 9

Which of the following situations is most likely to generate a positive externality?

A chemical processing plant releasing untreated wastewater into a municipal river.

An individual planting a diverse wildflower garden in their front yard, which supports local bee populations.

A luxury car manufacturer increasing its prices due to rising raw material costs.

A government introducing a corrective tax on carbon emissions from heavy transport.

Market failure and externalities Questions

  1. A Level
  2. /Economics
  3. /Market failure and externalities