A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2011 · Q151 Mark
A cost-benefit analysis of a proposed underground railway produced the following statistics. [Table with columns 'annual costs and benefits' and '$ million'] What can be concluded from the statistics?
AIf undertaken by the private sector there would be a loss of $13m.
BIf undertaken by the private sector there would be a profit of $3m.
CIf undertaken by the public sector there would be a net social benefit of $15m.
DIf undertaken by the public sector there would be a net social cost of $1m.
✓ Correct answer
C: If undertaken by the public sector there would be a net social benefit of $15m.
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