A-LevelEconomicsGovernment microeconomic intervention9708/32 · Feb/Mar 2017 · Q21 Mark

In 2015, a company electrified the main railway line between two cities in order to decrease the journey time. The work was noisy, expensive and took a long time. What would be the likely outcome of this project?

(a)A External costs increased and private benefits decreased. B Private benefits decreased and external cost decreased. C Private benefits increased and private costs increased. D Private costs increased and external costs decreased.[1]

Mark scheme

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

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Topic: Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Feb/Mar 2017 Paper 3 Variant 2, question 2.

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