Explain, using a diagram, how the social cost of consuming some goods can be higher than the private cost of consuming them.
(b)[12]
Discuss, using examples, whether cost-benefit analysis is an effective method of decision making when an economy's resources are allocated.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding that social cost equals private costs plus negative externalities, with the terms explained.” …