Economics 9708 · AS & A Level · 7.4

7.4 — practice question

A government is weighing whether to upgrade the rail network and select one of four high-speed routes. The benefits and costs for each route (private benefits, external benefits, private costs, external costs in $bn) are as follows: A: 14,20,0.4,0.1; B: 16,22,1.6,0.4; C: 18,12,0.2,1; D: 20,18,2,4. Which route ought to be selected?

  • ARoute A
  • BRoute B
  • CRoute C
  • DRoute D

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