A crop farm sprays pesticide on its fields. Some of the spray drifts onto neighbouring land and harms bees, reducing a beekeeper's honey harvest. The beekeeper receives no compensation.
The government proposes the following measures:
| Measure | Proposal |
|---|---|
| Minimum distance from neighbouring land within which pesticide must not be sprayed | 10 metres |
| Proportion of farms inspected each year | 5% |
Name the method of government intervention described.
Explain, using the information provided, one reason why this intervention may reduce market failure and one reason why it may not be fully successful.
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.