Economics 9708 · AS & A Level · 7.4

7.4 — practice question

In 2015, a company electrified the main railway line connecting two cities so that the journey time would be reduced. The project created a lot of noise, cost a great deal and needed a long time to finish. What is the most likely result of this project?

  • AExternal costs increased and private benefits decreased.
  • BPrivate benefits decreased and external cost decreased.
  • CPrivate benefits increased and private costs increased.
  • DPrivate costs increased and external costs decreased.

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