Table 1 shows private and social values per person for four activities.
| Activity | Private benefit (£) | Social benefit (£) | Private cost (£) | Social cost (£) |
|---|---|---|---|---|
| A | 40 | 40 | 18 | 26 |
| B | 45 | 52 | 30 | 30 |
| C | 28 | 37 | 18 | 18 |
| D | 35 | 47 | 25 | 25 |
Using Table 1, which activity creates a positive externality and has the greatest external benefit per person?
Activity A
Activity B
Activity C
Activity D
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.