Card 1 of 24
What does internalising an externality make the producer or consumer bear?
A
A producer must cut sugar below 5g per 100ml.
B
The full social cost or benefit of their choice.
C
It cuts the producer's cost without directly increasing buyers' desire for the good.
D
A subsidy lowers producers' costs, shifting supply right.
Card 1 of 24
3.8.2 Policies to correct externalities Flashcards
24 flashcards on OCR GCSE Economics 3.8.2 Policies to correct externalities: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.