Economics (AS & A Level) · May / June 2023 · Paper 32 · Question 8
9708Private costs and benefits, externalities and social costs and benefits
Which action would produce a positive externality of production?
- AA child is vaccinated against measles.
- BA consumer donates products to a local food bank.
- CA firm rebuilds a local road when constructing its new factory.
- DA government pays a subsidy to firms producing cars.
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Correct answer: C. A firm rebuilds a local road when constructing its new factory.
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