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

Scarcity, choice and opportunity cost — practice question

The government must decide on the most suitable of four routes for constructing a new railway line. The advantages and costs of each route are given in $m in the table. Which route should be selected?

  • Aprivate benefit 600, external benefit 600, private cost 100, external cost 150
  • Bprivate benefit 700, external benefit 600, private cost 150, external cost 200
  • Cprivate benefit 800, external benefit 500, private cost 100, external cost 150
  • Dprivate benefit 900, external benefit 700, private cost 200, external cost 300

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