A local authority estimates the benefits of two home insulation schemes.
| Scheme | Private benefit per installation | External benefit per installation | Number of installations |
|---|---|---|---|
| A | £420 | £110 | 600 |
| B | £650 | £150 | 400 |
Calculate the total social benefit of the two schemes.
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.