A local authority is comparing four programmes that would support households installing home insulation.
| Programme | Private benefit per home (£) | Social benefit per home (£) | Expected installations per year |
|---|---|---|---|
| Northmere | 420 | 500 | 120 |
| Eastfield | 380 | 475 | 175 |
| Southbank | 510 | 590 | 200 |
| Westford | 460 | 570 | 140 |
Using the table, calculate the largest total external benefit that any one programme is expected to create in one year.
Using the information in the table, explain why home insulation may be under-provided by the market.
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.