O-LevelEconomicsThe allocation of resources2281/11 · May/June 2021 · Q61 Mark

What is an example of an external benefit from an individual cycling, rather than driving, to work?

Ahigher cost of building cycle lanes

Bimproved physical fitness to the individual from cycling

Clower cost of cycling compared with driving to work

Dreduced congestion for other road users

✓ Correct answer

D: reduced congestion for other road users

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2021 Paper 1 Variant 1, question 6.

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