(a)[8]
Explain, using appropriate diagrams, what is meant by the term ‘externalities’.
(b)[12]
Discuss the policy a government should adopt most appropriately when production of a good creates a negative externality.
Economics 9708 · AS & A Level · 7.4
Explain, using appropriate diagrams, what is meant by the term ‘externalities’.
Discuss the policy a government should adopt most appropriately when production of a good creates a negative externality.