A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2015 · Q11 Mark
In 2013, there was much criticism of a government project to build a new high-speed rail link between two cities. What is the most likely reason for abandoning such a project?
AThe construction cost is greater than the running cost.
BThe external cost is greater than the external benefit.
CThe future costs are difficult to calculate.
DThe opportunity cost is too high.
✓ Correct answer
D: The opportunity cost is too high.
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