Economics 9708 · AS & A Level · 7.4

7.4 — practice question

An excessive number of flights in the airline industry creates avoidable harm to the environment. Which policy is most likely to lead to the socially optimum number of flights?

  • Aa complete ban on flights removing all private and external costs
  • Bgreater deregulation of the global airline industry
  • Cpublishing information to highlight the negative effects of flying on the environment
  • Dthe payment of a subsidy per passenger equal to the difference between the private and social benefit

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