A government campaign informs air passengers about noise experienced by villages near an airport. Why might the campaign continue to reduce the negative externality after the campaign has ended?
Airlines may continue to face higher fuel and wage costs because of the campaign
Airlines may remain subject to a legal limit on flights created by the campaign
Passengers' preferences may remain changed, so demand for flights stays lower
Village residents may continue to receive compensation from the campaign
127 exam-style questions on OCR GCSE Economics 3.8 Limitations of markets, covering 3.8.1 Positive and negative externalities, 3.8.2 Policies to correct externalities, 3.8.3 Impact of externality policies, and 3.8.4 Costs and benefits of externality policies. Each one has a worked solution and a mark scheme showing where the marks go.