Paper mills discharge untreated waste into a river, harming people downstream. A government pilot compares three policies. It records the average untreated waste discharged per mill each week before and after each policy was introduced.
| Policy | Average untreated waste before (kg per week) | Average untreated waste after (kg per week) | Share of legal-limit inspections passed |
|---|---|---|---|
| Tax on paper production | 60 | 48 | Not applicable |
| Legal limit on waste discharge | 60 | 36 | 90% |
| Information campaign for paper buyers | 60 | 54 | Not applicable |
Using the pilot results, evaluate whether the government should choose the legal limit rather than either of the other policies to reduce harm to people downstream.
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.