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3.8 Limitations of markets

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Question 22

A local council ran an information campaign explaining how smoke from burning garden waste can affect nearby residents.

Survey dateHouseholds aware of the effects on nearby residentsHouseholds reporting that they had burned garden waste in the previous year
Before the campaign35%22%
Four years after the campaign82%18%

Using the data, explain one possible limitation of information provision as a policy to reduce this negative externality.

[2]
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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