Economics 9708 · AS & A Level · 7.4

7.4 — practice question

The table presents the findings of a cost-benefit analysis concerning the construction of a new runway at an airport. costs US$m private 100 external 25; benefits US$m private 125 external 20. Which statement about the new runway is correct?

  • AThe net external benefit is US$5 million.
  • BThe net private benefit is US$25 million.
  • CThe net social benefit is US$105 million.
  • DThe net social benefit is US$145 million.

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