A football club stages a home match. It pays stewards to manage the crowd, sells tickets to spectators and pays its league a fine because the kick-off was delayed. After the match, people living in nearby streets spend time and money clearing up litter dropped by spectators, and nobody pays them for it.
Which of these is an external cost of the match?
the wages the club pays to the stewards who manage the crowd
the price spectators pay the club for their match tickets
the fine the club pays to its league for the delayed kick-off
the cost to nearby residents of clearing up litter dropped by spectators
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.