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Edexcel IGCSE Economics 1.2.6.a policies for externalities

Practise externality-policy questions by explaining how fines, taxes, subsidies or permits change incentives in transport and green-technology contexts.

Syllabus
First assessment 2019
Course
Economics 4EC1

Exam points

  • Explain how fines or taxes reduce negative externalities by changing incentives.
  • Describe how subsidies lower costs to encourage goods with external benefits.
  • Define pollution permits as legal rights that limit allowed emissions.

1.2.6.a Government policy to deal with externalities question 1

[Maximum number: 1]

Define the term fine.

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