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1.6 Market failure

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Question 8

A factory releases 8000 litres of waste into a river. Each litre imposes an external clean-up cost of £3. Regulation reduces the amount released by 75%, while enforcement costs the council £3000. By how much does the total external clean-up cost fall?

[1]
A

£3000

B

£6000

C

£18,000

D

£24,000

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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