In one year, 400 households in a town install heat pumps. Each heat pump gives the household that installs it a private benefit valued at £1,650. Lower emissions create an external benefit for other people valued at £450 for each heat pump installed.
Calculate the total social benefit of the heat pumps.
83 exam-style questions on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.