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A-LevelEconomicsGovernment microeconomic intervention9708/32 · May/June 2018 · Q31 Mark

The table shows some of the costs and benefits, in $ millions, associated with a road building project. Both a government department and a profit-maximising private firm are considering building the road. private costs | external costs | external benefits | social benefits --------------|----------------|-------------------|--------------- 450 | 75 | 50 | 550 Who would be willing to build the road? A Both would be willing to build it. B Neither would be willing to build it. C Only the government department would be willing to build it. D Only the private firm would be willing to build it.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

  1. [1] A

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, May/June 2018 Paper 3 Variant 2, question 3.

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