A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2014 · Q141 Mark
The existence of a positive externality is possible when
Aconsumers are not the best judges of the future benefits from consuming a product.
Bgroups of consumers act together to negotiate a discount on the sale of a product.
Cproducers use a government scheme to clear waste from their offices at no cost to
themselves.
Dsocial costs of production exceed private costs of production.
✓ Correct answer
A: consumers are not the best judges of the future benefits from consuming a product.
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