Economics 9708 · AS & A Level · 7.4

7.4 — practice question

A gardener plants bamboo in order to make the roadside look more attractive. The bamboo spreads into his neighbour’s garden, and the neighbour then gets rid of it using a chemical spray. What cannot be concluded about what happened as a result of the planting?

  • AIt increases external cost and external benefit.
  • BIt increases private cost and private benefit.
  • CIt increases social cost and social benefit.
  • DIt increases social cost more than social benefit.

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