A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2017 · Q21 Mark

A town council estimated the costs and benefits of operating a bus service in 2015 and 2016. These are shown in the table. 2015 $000 2016 $000 private costs 2000 2200 external costs 500 900 private benefits 1500 2300 external benefits 1000 800 What can be concluded from the table?

A Between 2015 and 2016, social costs fell and social benefits rose. B Between 2015 and 2016, social costs rose and social benefits fell. C In both years, positive externalities exceeded negative externalities. D In both years, social costs equalled social benefits.[1]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Oct/Nov 2017 Paper 3 Variant 1, question 2.

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