Economics 9708 · AS & A Level · 7.4

7.4 — practice question

(a)[4]

HAA said ‘the new runway would benefit the wider economy’. Explain why this claim could be valid.

(b)[4]

Explain why dropping off passengers could be classified as an externality and suggest one method of addressing this externality.

(c)[5]

Airport infrastructure belongs to private owners and generates income for them. Consider why, in this case, the government would pay £1.2 billion towards the cost of motorway alterations.

(d)[7]

Consider whether the information in the HAA proposal was mostly factual evidence or opinion and comment on whether you would support the proposal.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: It would help more than just the people who use it directly. Develop the idea of higher spending, trade, investment and jobs, and explain how these could come about.

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