Economics 9708 · AS & A Level · 7.4

7.4 — practice question

The diagrams illustrate the costs and benefits in four markets. Which pair of diagrams indicates the presence of a positive consumption externality and a negative production externality?

  • Apositive consumption externality: 1; negative production externality: 2
  • Bpositive consumption externality: 2; negative production externality: 3
  • Cpositive consumption externality: 3; negative production externality: 4
  • Dpositive consumption externality: 4; negative production externality: 1

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