A-LevelEconomicsGovernment microeconomic intervention9708/32 · Oct/Nov 2019 · Q31 Mark
A government decided to approve a road building scheme because it was socially beneficial. In making its decision it calculated private costs at $800m, private benefits at $800m and external costs at $150m. What must have been true about the external benefits of the scheme?
- (A)External benefits equalled private benefits.
- (B)External benefits exceeded external costs.
- (C)External benefits exceeded $200m.
- (D)There were no external benefits.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] B
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