Economics 9708 · AS & A Level · 7.4

7.4 — practice question

A government carries out a cost-benefit analysis of building a new high-speed railway network. The analysis gives the following details. If the railway network is built, the government insists that the net social benefit exceeds US$20 billion. What level must the external costs reach in order to meet the government's requirement?

  • Aunder US$40 billion
  • Bover US$40 billion but below US$60 billion
  • Cover US$60 billion but below US$160 billion
  • Dover US$160 billion

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