A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2015 · Q151 Mark
A gardener plants bamboo to create an attractive environment along the roadside. The bamboo grows into the garden of his neighbour, who removes the bamboo with a chemical spray. What cannot be concluded about the outcome of the planting?
AIt increases external cost and external benefit.
BIt increases private cost and private benefit.
CIt increases social cost and social benefit.
DIt increases social cost more than social benefit.
✓ Correct answer
D: It increases social cost more than social benefit.
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