A quarry creates dust and heavy lorry traffic, which impose costs on nearby residents who are not involved in buying or selling the stone.
State one government policy that could reduce these effects.
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.