A factory produces 3000 units. Its private cost is £6 per unit and its social cost is £8 per unit. A training course has 200 learners. Its private benefit is £90 per learner and its social benefit is £110 per learner. Which statement correctly compares the total external cost of factory production with the total external benefit of the training?
Factory production creates the larger external effect, by £10,000
Factory production creates the larger external effect, by £2000
Training creates the larger external effect, by £10,000
Training creates the larger external effect, by £2000
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.