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Externalities: Edexcel A‑Level Economics A questions

Every Edexcel A-Level Economics A exam question on 1.3.2 Externalities, 2016–2025, with its mark scheme and examiner’s report.

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784 questions

  1. Q3(b)

    June 2025 · Paper 1

    The whole paper ↗
    June 2025 Paper 1, question 3(b): The government subsidises dental care in the UK through the National Health Service (NHS). There has been a large decrease in the work carried out by NHS dentis
  2. June 2025 Paper 1, question 7: High Speed 2 (HS2) was a £100 billion UK government rail project designed to expand the existing network. The journey time between London and Manchester would t
  3. Q8

    June 2025 · Paper 1

    The whole paper ↗
    June 2025 Paper 1, question 8: In 2023, the UK prime minister Rishi Sunak said that he wanted to see all students in England study some form of mathematics until they reach the age of 18 to ‘
  4. Q1(a)

    June 2025 · Paper 3

    The whole paper ↗
    June 2025 Paper 3, question 1(a): Explain one reason why consumers buy less than the social optimum quantity of healthy food. (5) Read Figures 1 and 2 and the following Extracts A, B, C and D in
  5. Q3(b)

    June 2025 · AS Paper 1

    The whole paper ↗
    June 2025 AS Paper 1, question 3(b): Which one of the following is the most likely reason why a free market fails to achieve the social optimum position? (1) A Public goods are provided free of cha
  6. Q6(e)

    June 2025 · AS Paper 1

    The whole paper ↗
    June 2025 AS Paper 1, question 6(e): With reference to Extract A, discuss the likely private costs and external costs caused by meat farming. Use an appropriate diagram in your answer. (15)
  7. Q1(b)

    June 2024 · Paper 3

    The whole paper ↗
    June 2024 Paper 3, question 1(b): Examine one likely externality that arises when a producer generates electricity by burning gas. Use a diagram to show the external costs of production. (8) Rea
  8. Q3(b)

    June 2024 · AS Paper 1

    The whole paper ↗
    June 2024 AS Paper 1, question 3(b): Singapore’s education system is provided by the state. With reference to the information above, explain why education is normally provided by the state. (3) 3 S
  9. Q6(e)

    June 2024 · AS Paper 1

    The whole paper ↗
    June 2024 AS Paper 1, question 6(e): Discuss the likely private costs and external costs of the production of plastic. (15) Read Figure 1 and the following extracts (A, B and C) before answering Qu
  10. Q6(d)

    June 2023 · Paper 1

    The whole paper ↗
    June 2023 Paper 1, question 6(d): With reference to Extract C, discuss the likely private and external benefits of viewing educational websites and TV programmes. (12) Read Figures 1 and 2 and t
  11. Q6(b)

    June 2023 · AS Paper 1

    The whole paper ↗
    June 2023 AS Paper 1, question 6(b): With reference to Extract B, explain two external benefits associated with the consumption of ‘public service broadcasting’ (line 2). (6) Read Figures 1 and 2 a
  12. Q3(a)

    June 2022 · Paper 1

    The whole paper ↗
    June 2022 Paper 1, question 3(a): Draw an externalities diagram to show the likely impact of the sewage discharge on the local tourist industry. (4) 3 A company that provides drinking water and
  13. Q1(a)

    June 2022 · Paper 3

    The whole paper ↗
    June 2022 Paper 3, question 1(a): Using the information provided, explain one externality that arises in the food delivery market. (5) Read Figure 1 and the following extracts (A to C) before an
  14. Q6(f)

    June 2022 · AS Paper 1

    The whole paper ↗
    June 2022 AS Paper 1, question 6(f): Some economists suggest that the market price of cod does not result in the socially optimum level of output. Evaluate the likely external costs from the over-f
  15. Q6(b)

    November 2021 · Paper 1

    The whole paper ↗
    November 2021 Paper 1, question 6(b): Examine the likely impact of Thomas Cook’s plan ‘to reduce their airline emissions’ (Extract B, line 6) on the social optimum position. Use an appropriate exter
  16. Q2(a)

    October 2020 · Paper 1

    The whole paper ↗
    October 2020 Paper 1, question 2(a): Draw an externalities diagram to show the likely impact of the consumption of higher education. (4) 2 The external benefits of higher education include increase
  17. Q2(b)

    October 2020 · Paper 1

    The whole paper ↗
    October 2020 Paper 1, question 2(b): On average, in the UK, a working-age graduate earns approximately £10 000 more per year than a non-graduate. (Source adapted from: https://assets.publishing.ser
  18. Q5(b)

    October 2020 · AS Paper 1

    The whole paper ↗
    October 2020 AS Paper 1, question 5(b): Explain one likely microeconomic reason why the government is using taxpayers’ money to fund HS2. (2) 5 HS2 is a high-speed rail network linking the north and s
  19. Q6(c)

    October 2020 · AS Paper 1

    The whole paper ↗
    October 2020 AS Paper 1, question 6(c): With reference to Extract A, explain one likely private benefit to students and one likely external benefit of higher education. (6) Read Figures 1, 2, 3 and th
  20. Q7

    June 2018 · Paper 1

    The whole paper ↗
    June 2018 Paper 1, question 7: In September 2016 the government approved the building of an £18 billion nuclear power station, Hinkley Point C, which will supply 7% of UK electricity for up t
All 26 questions on Externalities, as a list
  1. June 2025, Paper 1, Q3(b) (4 marks): The government subsidises dental care in the UK through the National Health Service (NHS). There has been a large decrease in the work carried out by NHS dentis
  2. June 2025, Paper 1, Q7 (25 marks): High Speed 2 (HS2) was a £100 billion UK government rail project designed to expand the existing network. The journey time between London and Manchester would t
  3. June 2025, Paper 1, Q8 (25 marks): In 2023, the UK prime minister Rishi Sunak said that he wanted to see all students in England study some form of mathematics until they reach the age of 18 to ‘
  4. June 2025, Paper 3, Q1(a) (5 marks): Explain one reason why consumers buy less than the social optimum quantity of healthy food. (5) Read Figures 1 and 2 and the following Extracts A, B, C and D in
  5. June 2025, AS Paper 1, Q3(b) (1 mark): Which one of the following is the most likely reason why a free market fails to achieve the social optimum position? (1) A Public goods are provided free of cha
  6. June 2025, AS Paper 1, Q6(e) (15 marks): With reference to Extract A, discuss the likely private costs and external costs caused by meat farming. Use an appropriate diagram in your answer. (15)
  7. June 2024, Paper 3, Q1(b) (8 marks): Examine one likely externality that arises when a producer generates electricity by burning gas. Use a diagram to show the external costs of production. (8) Rea
  8. June 2024, AS Paper 1, Q3(b) (3 marks): Singapore’s education system is provided by the state. With reference to the information above, explain why education is normally provided by the state. (3) 3 S
  9. June 2024, AS Paper 1, Q6(e) (15 marks): Discuss the likely private costs and external costs of the production of plastic. (15) Read Figure 1 and the following extracts (A, B and C) before answering Qu
  10. June 2023, Paper 1, Q6(d) (12 marks): With reference to Extract C, discuss the likely private and external benefits of viewing educational websites and TV programmes. (12) Read Figures 1 and 2 and t
  11. June 2023, AS Paper 1, Q6(b) (6 marks): With reference to Extract B, explain two external benefits associated with the consumption of ‘public service broadcasting’ (line 2). (6) Read Figures 1 and 2 a
  12. June 2022, Paper 1, Q3(a) (4 marks): Draw an externalities diagram to show the likely impact of the sewage discharge on the local tourist industry. (4) 3 A company that provides drinking water and
  13. June 2022, Paper 3, Q1(a) (5 marks): Using the information provided, explain one externality that arises in the food delivery market. (5) Read Figure 1 and the following extracts (A to C) before an
  14. June 2022, AS Paper 1, Q6(f) (20 marks): Some economists suggest that the market price of cod does not result in the socially optimum level of output. Evaluate the likely external costs from the over-f
  15. November 2021, Paper 1, Q6(b) (8 marks): Examine the likely impact of Thomas Cook’s plan ‘to reduce their airline emissions’ (Extract B, line 6) on the social optimum position. Use an appropriate exter
  16. October 2020, Paper 1, Q2(a) (4 marks): Draw an externalities diagram to show the likely impact of the consumption of higher education. (4) 2 The external benefits of higher education include increase
  17. October 2020, Paper 1, Q2(b) (1 mark): On average, in the UK, a working-age graduate earns approximately £10 000 more per year than a non-graduate. (Source adapted from: https://assets.publishing.ser
  18. October 2020, AS Paper 1, Q5(b) (2 marks): Explain one likely microeconomic reason why the government is using taxpayers’ money to fund HS2. (2) 5 HS2 is a high-speed rail network linking the north and s
  19. October 2020, AS Paper 1, Q6(c) (6 marks): With reference to Extract A, explain one likely private benefit to students and one likely external benefit of higher education. (6) Read Figures 1, 2, 3 and th
  20. June 2018, Paper 1, Q7 (25 marks): In September 2016 the government approved the building of an £18 billion nuclear power station, Hinkley Point C, which will supply 7% of UK electricity for up t
  21. June 2018, AS Paper 1, Q6(f) (20 marks): Using the concept of external costs, evaluate whether nuclear power is under-provided or over-provided in the energy market. Use an appropriate diagram in your
  22. June 2017, Paper 3, Q1(b) (8 marks): Examine the likely impact of externalities of copper mining on firms and communities within Chile. (8) Read Figures 1 to 3 and the following extracts (A and B)
  23. June 2017, AS Paper 1, Q5(b) (1 mark): Which one of the following statements is correct? (1) A The marginal social benefits exceed the marginal private benefits from university education B University
  24. June 2016, AS Paper 1, Q2(a) (1 mark): Define the term ‘external benefits’. (1)
  25. June 2016, AS Paper 1, Q2(c) (2 marks): Annotate on Diagram A the welfare gain area and the new social optimum output resulting from successful government intervention in the market for nursery places
  26. June 2016, AS Paper 1, Q3(a) (1 mark): The impact of the flower industry on workers in the fishing industry is an example of: (1) A private benefits B private costs C external costs D external benefi

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