Edexcel · 9EC0 / 8EC0 / WEC11–14

Externalities

51questions
414marks
27series
2016–2025years

Externalities comes up in 51 questions across the Edexcel A Level, AS and International A Level past papers (9EC0 / 8EC0 / WEC11–14), worth 414 marks between them. They run from 2016 to 2025 and appear on A Level Paper 1, A Level Paper 3, AS Level Paper 1, International A Level Unit 1.

Tariffs run from 1 to 25 marks. The commonest instructions are Examine (10), Discuss (9), Identify (MCQ) (9). Specification points covered: 1.3.2, 1.3.5.2, 1.4.1.

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June 2025 3 questions

4 marksA Level · Paper 1 · Section A

Q3(b) On an externalities diagram, mark the welfare gain from UK dental care consumption, given 90% of practices refuse new NHS patients.

1.3.2ExternalitiesDraw/DiagramShort answer
15 marksAS Level · Paper 1 · Section B

Q6(e) Using Extract A, discuss the private and external costs arising from meat farming; a suitable diagram is needed.

1.3.2ExternalitiesDiscussData response essay
25 marksA Level · Paper 1 · Section C

Q7 Evaluate the microeconomic consequences of large infrastructure schemes such as HS2, a £100bn railway destroying ancient woodland, homes and businesses.

1.3.2ExternalitiesEvaluateEssay (choice)

May 2025 2 questions

8 marksInternational A Level · Unit 1 · Section C

Q12(d) Examine two spillover costs that container shipping imposes on third parties, using the environmental extract.

1.3.5.2ExternalitiesExamineData response essay
4 marksInternational A Level · Unit 1 · Section B

Q7 Sketch the spillover gains from the 1.3 million Filipinos who studied online in 2021.

1.3.5.2ExternalitiesDraw/DiagramShort answer

Jan 2025 1 question

14 marksInternational A Level · Unit 1 · Section C

Q12(e) Discuss the spillover costs of growing cocoa in West Africa, with an externalities diagram.

1.3.5.2ExternalitiesDiscussData response essay

Oct 2024 1 question

1 markInternational A Level · Unit 1 · Section A

Q4 Pick out the welfare loss area on a marginal cost and benefit diagram for chemical production.

1.3.5.2ExternalitiesIdentify (MCQ)Multiple choice

June 2024 2 questions

15 marksAS Level · Paper 1 · Section B

Q6(e) Discuss what making plastic costs producers privately and what it costs third parties externally.

1.3.2ExternalitiesDiscussData response essay
8 marksA Level · Paper 3 · Section A

Q1(b) Examine an externality created where gas is burned to make electricity, supporting the answer with an external costs of production diagram.

1.3.2ExternalitiesExamineData response essay

May 2024 1 question

8 marksInternational A Level · Unit 1 · Section C

Q12(d) Examine two spillover costs arising from growing rice, using the environmental extract.

1.3.5.2ExternalitiesExamineData response essay

Jan 2024 2 questions

8 marksInternational A Level · Unit 1 · Section C

Q12(d) Examine two spillover costs that rearing chickens imposes on the environment.

1.3.5.2ExternalitiesExamineData response essay
4 marksInternational A Level · Unit 1 · Section B

Q7 Sketch a diagram of the spillover benefits from university study, such as longer lives and less crime.

1.3.5.2ExternalitiesDraw/DiagramShort answer

Oct 2023 2 questions

14 marksInternational A Level · Unit 1 · Section C

Q12(e) Discuss the external costs arising when fertiliser is manufactured and applied, with a suitable diagram.

1.3.5.2ExternalitiesDiscussData response essay
1 markInternational A Level · Unit 1 · Section A

Q4 Deduce the socially optimal output and the welfare gain area from a diagram of Spanish museum visits.

1.3.5.2ExternalitiesIdentify (MCQ)Multiple choice

June 2023 3 questions

6 marksAS Level · Paper 1 · Section B

Q6(b) Drawing on Extract B, identify and explain two positive externalities arising when people consume public service broadcasting.

1.3.2ExternalitiesExplainData response essay
12 marksA Level · Paper 1 · Section B

Q6(d) Discuss the private and external gains from watching educational TV and sites such as BBC Bitesize and Oak National Academy.

1.3.2ExternalitiesDiscussData response essay
25 marksA Level · Paper 1 · Section C

Q8 Evaluate how UK government policy might cut the carbon emitted by road transport.

1.4.1ExternalitiesEvaluateEssay (choice)

May 2023 2 questions

4 marksInternational A Level · Unit 1 · Section C

Q12(b) Explain one benefit to Apple of powering its production using renewable sources of energy.

1.3.5.2ExternalitiesExplainData response essay
14 marksInternational A Level · Unit 1 · Section C

Q12(e) Discuss the microeconomic consequences, including external costs, of the decade-long rise in smartphone output.

1.3.5.2ExternalitiesDiscussData response essay

Jan 2023 1 question

4 marksInternational A Level · Unit 1 · Section B

Q9 Using the data given, distinguish private from external benefits, where a Tanzanian neighbour's bees lifted sunflower seed yields from 300kg to 620kg.

1.3.5.2ExternalitiesExplainShort answer

Oct 2022 1 question

2 marksInternational A Level · Unit 1 · Section C

Q12(a) Give the meaning of 'external costs' as used in Extract C.

1.3.5.2ExternalitiesDefineData response essay

June 2022 3 questions

4 marksA Level · Paper 1 · Section A

Q3(a) Use an externalities diagram to trace how illegal sewage dumped in the River Severn hits local tourism.

1.3.2ExternalitiesDraw/DiagramShort answer
20 marksAS Level · Paper 1 · Section B

Q6(f) Evaluate the external costs cod over-fishing creates, backing your answer with a suitable diagram.

1.3.2ExternalitiesEvaluateEssay (choice)
5 marksA Level · Paper 3 · Section A

Q1(a) Explain one externality generated by food delivery, using the supplied data on UK third-party delivery market shares.

1.3.2ExternalitiesExplainData response essay

May 2022 1 question

2 marksInternational A Level · Unit 1 · Section C

Q12(a) Give the meaning of 'external costs', the term used in Extract B (short definition).

1.3.5.2ExternalitiesDefineData response essay

Jan 2022 2 questions

8 marksInternational A Level · Unit 1 · Section C

Q12(d) Examine, using Extract B, two external costs that arise when clothing is manufactured.

1.3.5.2ExternalitiesExamineData response essay
1 markInternational A Level · Unit 1 · Section A

Q4 An MPB/MSB diagram covers measles vaccinations; pick out what the diagram establishes about the welfare gain area, equilibrium in the market and the social optimum.

1.3.5.2ExternalitiesIdentify (MCQ)Multiple choice

Nov 2021 1 question

8 marksA Level · Paper 1 · Section B

Q6(b) Examine what Thomas Cook's proposed cut in airline emissions does to the social optimum, supported by an externalities diagram.

1.3.2ExternalitiesExamineData response essay

Oct 2021 1 question

14 marksInternational A Level · Unit 1 · Section C

Q12(e) Drawing on Extract B, discuss what external costs arise when tyres are manufactured and then used.

1.3.5.2ExternalitiesDiscussData response essay

May 2021 1 question

1 markInternational A Level · Unit 1 · Section A

Q4 From an MPC/MSC diagram covering chemicals production, state which conclusion about welfare loss, the social optimum and market equilibrium holds.

1.3.5.2ExternalitiesIdentify (MCQ)Multiple choice

Jan 2021 2 questions

4 marksInternational A Level · Unit 1 · Section B

Q7 Sketch an externalities diagram showing why vaccinations are taken up at below the socially optimal level.

1.3.5.2ExternalitiesDraw/DiagramShort answer
4 marksInternational A Level · Unit 1 · Section B

Q8 Using a table of greenhouse gases released in beef, lamb and poultry production, set out the meaning of external costs of production.

1.3.5.2ExternalitiesExplainShort answer

Oct 2020 5 questions

4 marksA Level · Paper 1 · Section A

Q2(a) Use an externalities diagram to illustrate the welfare effects of consuming higher education (context: spillovers in innovation, tax receipts, faster growth and a more flexible labour market).

1.3.2ExternalitiesDraw/DiagramShort answer
1 markA Level · Paper 1 · Section A

Q2(b) Working-age graduates earn about £10 000 a year more than non-graduates; that gap chiefly signals which of these? (external benefit / external cost / private benefit / social cost)

1.3.2ExternalitiesIdentify (MCQ)Multiple choice
6 marksAS Level · Paper 1 · Section B

Q6(c) Drawing on Extract A, explain one private benefit students gain from higher education plus one external benefit.

1.3.2ExternalitiesExplainData response essay
4 marksAS Level · Paper 1 · Section B

Q6(d) Using Figure 2, work out the percentage rise in outstanding student loans between 2013 and 2018.

1.3.2ExternalitiesCalculateData response essay
14 marksInternational A Level · Unit 1 · Section C

Q12(e) Discuss the externalities arising when palm oil is produced, drawing on Extract B; a suitable diagram is needed.

1.3.5.2ExternalitiesDiscussData response essay

Jan 2020 2 questions

14 marksInternational A Level · Unit 1 · Section C

Q12(e) Using Extract B and the idea of external benefits, discuss why education is consumed below its social optimum; a diagram is expected.

1.3.5.2ExternalitiesDiscussData response essay
1 markInternational A Level · Unit 1 · Section A

Q4 Using a market diagram for new house construction showing MPB=MSB, MPC and MSC, identify which statement can be deduced about the social optimum, market equilibrium and the area of welfare loss.

1.3.5.2ExternalitiesIdentify (MCQ)Multiple choice

Oct 2019 2 questions

8 marksInternational A Level · Unit 1 · Section C

Q12(d) Examine the external costs arising from using and throwing away plastic bags, drawing on the environmental extract.

1.3.5.2ExternalitiesExamineData response essay
20 marksInternational A Level · Unit 1 · Section D

Q14 Evaluate the private and external benefits of vaccinating children against measles, given Ukraine's falling vaccination rate.

1.3.5.2ExternalitiesEvaluateEssay (choice)

May 2019 2 questions

8 marksInternational A Level · Unit 1 · Section C

Q12(d) Examine, using Extract B, the external costs that greater meat output generates.

1.3.5.2ExternalitiesExamineData response essay
1 markInternational A Level · Unit 1 · Section A

Q4 From an MPB/MSB diagram covering education, work out what follows about the social optimum, the welfare gain area and market equilibrium.

1.3.5.2ExternalitiesIdentify (MCQ)Multiple choice

Jan 2019 1 question

8 marksInternational A Level · Unit 1 · Section C

Q12(d) From Extract B, examine which external costs arise when cocoa beans are grown and processed, and who ends up bearing them.

1.3.5.2ExternalitiesExamineData response essay

June 2018 2 questions

20 marksAS Level · Paper 1 · Section B

Q6(f) Judge, through the lens of external costs, whether the energy market supplies too much or too little nuclear power; include a suitable diagram.

1.3.2ExternalitiesEvaluateEssay (choice)
25 marksA Level · Paper 1 · Section C

Q7 Evaluate the private and external costs of building large power stations, using an externalities diagram (context: Hinkley Point C, £18bn).

1.3.2ExternalitiesEvaluateEssay (choice)

June 2017 2 questions

1 markAS Level · Paper 1 · Section A

Q5(b) Identify which statement about university education is correct (marginal social benefits, inferior good, public good, or social optimum quantity).

1.3.2ExternalitiesIdentify (MCQ)Multiple choice
8 marksA Level · Paper 3 · Section A

Q1(b) Examine how externalities generated by copper mining affect Chilean firms and local communities.

1.3.2ExternalitiesExamineData response essay

June 2016 3 questions

1 markAS Level · Paper 1 · Section A

Q2(a) Give the meaning of the term external benefits (short defined-term question).

1.3.2ExternalitiesDefineShort answer
2 marksAS Level · Paper 1 · Section A

Q2(c) On the nursery school places diagram, mark in the new social optimum output plus the welfare gain area once intervention succeeds.

1.3.2ExternalitiesDraw/DiagramShort answer
1 markAS Level · Paper 1 · Section A

Q3(a) Classify what Kenya's flower growers do to fishing industry workers (private benefit / private cost / external cost / external benefit).

1.3.2ExternalitiesIdentify (MCQ)Multiple choice

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