Economics 9708 · AS & A Level · 7.4

7.4 — practice question

A government carries out an assessment of the costs and benefits of permitting a leisure company to build a holiday resort in an area of natural beauty. Under what circumstances should the government permit this development to go ahead?

  • Aif private benefits exceed private costs
  • Bif private costs exceed private benefits
  • Cif social benefits exceed social costs
  • Dif social costs exceed social benefits

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