O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2018 · Q61 Mark
Coal production in the UK has declined in recent years. One reason given for this is that the social cost of coal production is too high. What best describes the social cost of coal production?
Aall the benefits of coal production minus all the costs of coal production
Bthe cost of the environmental damage caused by coal production
Cthe cost to the government of subsidising the coal industry
Dthe private costs of coal production plus the external costs of coal production
✓ Correct answer
D: the private costs of coal production plus the external costs of coal production
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