Economics 9708 · AS & A Level · 7.4

7.4 — practice question

A cost-benefit analysis is being carried out for the construction of a hydroelectric power station. Which combination of circumstances would be most likely to result in approval of the scheme?

  • APrivate benefits are greater than private costs.
  • BSocial benefits are greater than social costs.
  • CSocial benefits are greater than total costs.
  • DTotal costs are greater than total revenue.

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