Economics (AS & A Level) · Oct / Nov 2024 · Paper 32 · Question 4
9708Private costs and benefits, externalities and social costs and benefits
A government makes it compulsory for motorbike riders to wear helmets. What would represent a positive externality of consumption associated with this decision?
- Adecreased pressure on the provision of health care
- Bexpenses incurred on surveillance of motorbike riders to ensure compliance
- Cincreased life expectancy of motorbike riders
- Dincreased profits of helmet manufacturers
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Correct answer: A. decreased pressure on the provision of health care
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