A pollution tax funds information campaigns, but it raises heating costs proportionately more for low-income households. Which evaluation is best?
The policy must fail because it raises revenue
The information campaign has no opportunity cost
Environmental benefits and better information must be weighed against the unequal burden and the responsiveness of consumption
The tax can affect producers but not consumers
31 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.