1.1.6 Externalities
- Syllabus
- 2026
- Topic
- 1.1.6
- Level
- —
1.1.6.a External costs
Definition of external costs.
1.1.6.b Examples of external costs
Give and explain examples of external costs, including pollution, congestion and environmental damage.
1.1.6.c External benefits
Definition of external benefits.
1.1.6.d Examples of external benefits
Examples of external benefits, including education, healthcare and vaccinations.
1.1.6.e Social cost and social benefit formulae
Definition and formula for:
- social costs = private costs + external costs
- social benefits = private benefits + external benefits.
Objective notes
5 learning objectivesConceptIGCSE Economics