A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2011 · Q141 Mark
A congestion charge of £10 per day has been imposed on motorists taking their cars into Central London. What is it about driving into Central London that provides the economic justification for this charge?
AThe external benefits are greater than the external costs.
BThe private costs are greater than the external costs.
CThe social benefits are greater than the private benefits.
DThe social costs are greater than the private costs.
✓ Correct answer
D: The social costs are greater than the private costs.
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