A-LevelEconomicsGovernment microeconomic intervention9708/33 · Oct/Nov 2019 · Q11 Mark

What is not an example of an externality? A A new firm is established in an area and pays its workers higher wage rates than other firms. B The flowers planted by a householder in his garden give pleasure to his neighbours. C The immunisation of children against smallpox reduces the danger of the risk of infection to others. D The installation of security cameras in a city centre results in an increase in thefts elsewhere.

(a)What is not an example of an externality? A A new firm is established in an area and pays its workers higher wage rates than other firms. B The flowers planted by a householder in his garden give pleasure to his neighbours. C The immunisation of children against smallpox reduces the danger of the risk of infection to others. D The installation of security cameras in a city centre results in an increase in thefts elsewhere.[1]

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: Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Oct/Nov 2019 Paper 3 Variant 3, question 1.

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