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1.6 Market failure

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Question 59

A cement plant releases dust that increases cleaning costs for nearby households. How should the extra household costs be classified?

[1]
A

A negative externality from production

B

A positive private benefit from production

C

An external benefit from consumption

D

The plant's private production cost

Markscheme

1.6 Market failure Questions

  1. GCSE
  2. /Economics
  3. /1.6 Market failure

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.

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