A congestion charge reduces car journeys into a city centre. Which causal chain best explains how this may correct market failure?
Driving becomes cheaper, more journeys are made and congestion falls
Driving becomes more costly, fewer journeys are made and congestion imposed on third parties falls
The charge increases every private benefit and leaves traffic unchanged
The demand for public transport must fall, increasing road congestion
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.