Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Which option is not an example of an externality?

  • AThe establishment of a new firm in an area increases the general level of wage rates in the area.
  • BThe flowers planted by a householder in his garden give pleasure to his neighbours.
  • CThe immunisation of children against smallpox reduces the danger of the risk of infection to others.
  • DThe installation of security cameras in a city centre results in an increase in thefts elsewhere.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI