Why might a campaign explaining the health risks of smoking reduce a negative externality?
It may reduce demand by improving consumers' information
It guarantees that every smoker stops
It shifts supply right by reducing production costs
It removes the opportunity cost of 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.