Explain one externality that could come about as a result of a factory producing clothes.

A factory producing clothes would likely produce air pollution. This is a negative externality as it is an unintended consequence of production.

RT

Related Economics GCSE answers

All answers ▸

Define what market failure is and identify an example of market failure, explaining fully why it is a relevant example.


What are the characteristics of an oligopoly?


Explain how a fall in interest rates can affect total spending in the economy.


How do interest rate changes affect economic growth?