Economics · May / June 2019 · Paper 12 · Question 5

An airline upgrades its services by providing bigger aircraft. The airline claims it will reduce catering waste and lower carbon (CO2) emissions per passenger journey although fares may rise. What is a private cost and an external benefit of this decision?

1. Abigger aircraft / higher fares
2. Bhigher fares / lower CO2
3. Cless catering waste / bigger aircraft
4. Dlower CO2 / less catering waste

As printed in the paper