A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2010 · Q131 Mark
James grows fruit trees in his garden. They attract butterflies and bees. What is not an externality of this?
ANeighbours may be stung by the bees that pollinate the trees.
BNeighbours may buy fruit more cheaply from James than the local supermarket.
CNeighbours may enjoy better air quality as the trees naturally improve the atmosphere.
DNeighbours may like to watch the activity of the wildlife at no cost.
✓ Correct answer
B: Neighbours may buy fruit more cheaply from James than the local supermarket.
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