Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Under what conditions will an economic activity produce a net social benefit?

  • Awhen (private benefit + external benefit) – (private cost + external cost) is negative
  • Bwhen (private benefit + external benefit) – (private cost + external cost) is positive
  • Cwhen (private benefit + private cost) – (external benefit + external cost) is negative
  • Dwhen (private benefit + private cost) – (external benefit + external cost) is positive

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