Economics 9708 · AS & A Level · 7.4

7.4 — practice question

What kinds of externalities are generated by 1 a firm increasing the supply of trained labour and, 2 the loud noise produced when a householder mows his lawn?

  • A1 negative production externality; 2 negative consumption externality
  • B1 negative production externality; 2 positive consumption externality
  • C1 positive production externality; 2 negative consumption externality
  • D1 positive production externality; 2 positive consumption externality

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