Farmers' use of a pesticide reduces the honey harvests of neighbouring beekeepers. The government has run an information campaign for three years to explain this harm to farmers.
| Effect | Annual amount |
|---|---|
| Estimated external cost before the campaign | £4.8 million |
| Estimated external cost after three years | £3.1 million |
| Cost of continuing the campaign | £0.9 million |
Using the information, evaluate whether the government should continue the information 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.