Aircraft noise disturbs people living near an airport, who receive no payment from airlines or passengers. A government survey asked 120 people who had booked a flight in the past year whether they knew that aircraft noise could disturb people living near an airport.
| Response | Number of people |
|---|---|
| Did not know | 78 |
| Knew | 42 |
Using the survey data, explain which type of government policy would most directly address the problem the survey shows, and predict its likely effect on the number of flights booked.
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.