Economics 0455 · IGCSE · Market failure

Market failure — practice question

A government plans to construct a new road through a forest. What would count as an external cost of this?

  • Athe cost of building the road
  • Bthe loss suffered by those who would have used the forest
  • Cthe cost of maintaining the road
  • Dthe new jobs created from the construction of the road

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI