A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2019 · Q11 Mark

Which situation would indicate the presence of an externality? A Producers' actions cause a shortage of a particular good. B Private motorists contribute to traffic congestion in city centres. C Differences in ability cause inequality in the distribution of income in an economy. D Increased demand for a good by the rich raises its price for poorer consumers.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Oct/Nov 2019 Paper 3 Variant 1, question 1.

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