A patch of litter in the Pacific Ocean, known as the Great Pacific Garbage Patch, is around three times the size of France. It is composed of waste such as discarded fishing nets, though most of it is plastic rubbish. By 2050, it is predicted that there will be more plastic than fish in the Pacific Ocean. Several islands in the Pacific Ocean depend on fishing as a specialist activity. More pollution will raise the fishing industry’s social cost.
(a)[2]
Identify the two kinds of cost that together form social cost.
(b)[4]
Explain two causes of a rightward shift in the demand curve for fish.
(c)[6]
Analyse how cleaning up pollution could bring economic benefits.
(d)[8]
Discuss whether specialisation by countries benefits consumers.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Private-cost component” …