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3.8 Limitations of markets

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Question 14

A cafe pays a cleaning firm to remove litter from the pavement outside its premises.

Which outcome is a positive externality?

[1]
A

People using the street enjoy cleaner surroundings

B

The cleaning firm receives payment for removing the litter

C

The cafe attracts more customers after the litter is removed

D

Passers-by are held up while the cleaners are working

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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