A quarry beside a village creates dust, noise and heavy lorry traffic for the people who live there. A student decides to stay on in education, and the workforce becomes more skilled as a result. Which classification of these two externalities is correct?
The quarry creates a negative consumption externality and staying in education creates a positive production externality
The quarry creates a negative consumption externality and staying in education creates a positive consumption externality
The quarry creates a negative production externality and staying in education creates a positive consumption externality
The quarry creates a negative production externality and staying in education creates a positive production externality
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.