A household decides whether to fit loft insulation. It considers the reduction in its own heating bill, while lower national energy demand and emissions benefit other people too.
Which statement about fitting loft insulation is correct?
The private benefit is greater than the social benefit
The social benefit is greater than the private benefit
The social cost is greater than the private cost
The social benefit is equal to the private benefit
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.