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3.8.4 Costs and benefits of externality policies

Card 1 of 24

What is the main benefit of correcting an externality?

A

For small or difficult-to-value externalities, intervention may not be worthwhile because the cure costs more than the problem.

B

The quantity produced moves closer to the socially optimal quantity.

C

It takes a larger share of a low income than of a high income.

D

Costs of collecting taxes, checking claims and policing rules.

Card 1 of 24

3.8.4 Costs and benefits of externality policies Flashcards

  1. GCSE
  2. /Economics
  3. /3.8.4 Costs and benefits of externality policies

24 flashcards on OCR GCSE Economics 3.8.4 Costs and benefits of externality policies: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.

Flashcards