Nitrate from fertiliser washes off fields into rivers. Producers must pay the government £40 for every tonne they sell of any fertiliser with a nitrate content above a set level. Fertiliser above this level can still be sold, but several producers change their products so that the nitrate content falls below the set level. Which type of government intervention is described?
A ban on the sale of fertiliser with a high nitrate content
An information campaign about the nitrate in fertiliser
An indirect tax on fertiliser with a high nitrate content
A subsidy for producers of fertiliser with a low nitrate content
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.