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3.8 Limitations of markets

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Question 107

The government subsidises a product with positive externalities. Which effect is most likely?

[1]
A

Supply shifts left and consumption falls

B

Demand shifts left and price rises

C

The external benefit becomes an external cost

D

Supply shifts right, tending to lower price and increase consumption

Markscheme

3.8 Limitations of markets Questions

  1. GCSE
  2. /Economics
  3. /3.8 Limitations of markets

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.

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