A community relies on a private company to supply electricity using a coal-fired power station. The power station causes air pollution which imposes an external cost shown in the diagram. [Figure]. The government decides to impose a tax on the electricity company to correct market failure. What represents the tax? A WX B WY C XY D YZ
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Mark scheme
Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.
- [1] C
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