A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2014 · Q151 Mark
The diagram shows the private and social costs and benefits that arise from the consumption and production of a good. If there is no government intervention, what is the value of the marginal external benefit?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
A$2
B$3
C$4
D$6
✓ Correct answer
C: $4
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The price system and the microeconomy and see which topics are most likely to come up next.
Sign up free →