Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

The table sets out the projected costs and benefits for four government projects. The government can fund only one project. Which project should be selected?

  • Aprivate benefits $40m, external benefits $200m, private costs $60m, external costs $70m
  • Bprivate benefits $60m, external benefits $160m, private costs $100m, external costs $20m
  • Cprivate benefits $100m, external benefits $210m, private costs $100m, external costs $120m
  • Dprivate benefits $150m, external benefits $90m, private costs $120m, external costs $140m

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