Question 74 – 1.1 Economic methodology and the economic problem - Questions

A local council has been awarded a $million\pounds 2.5\text{ million}$ grant for municipal development and is evaluating three mutually exclusive proposals:

Resurfacing high-wear local roads ( $R$ )
Constructing a new community leisure centre ( $L$ )
Developing a municipal park and green space ( $P$ )

The council’s cost-benefit analysis determines that resurfacing the roads ( $R$ ) provides the highest net social benefit. Additionally, they prefer the public health outcomes of the leisure centre ( $L$ ) over the environmental benefits of the municipal park ( $P$ ).

If the council acts rationally to maximise net social benefit, what is the opportunity cost of this decision?

The municipal park ( $P$ )

The community leisure centre ( $L$ )

Resurfacing high-wear local roads ( $R$ )

The community leisure centre ( $L$ ) and the municipal park ( $P$ ) combined

A local council has been awarded a $million\pounds 2.5\text{ million}$ grant for municipal development and is evaluating three mutually exclusive proposals:

Resurfacing high-wear local roads ( $R$ )
Constructing a new community leisure centre ( $L$ )
Developing a municipal park and green space ( $P$ )

If the council acts rationally to maximise net social benefit, what is the opportunity cost of this decision?

The municipal park ( $P$ )

The community leisure centre ( $L$ )

Resurfacing high-wear local roads ( $R$ )

The community leisure centre ( $L$ ) and the municipal park ( $P$ ) combined

1.1 Economic methodology and the economic problem

Question 59

1.1 Economic methodology and the economic problem

Question 59

1.1 Economic methodology and the economic problem

Question 59

1.1 Economic methodology and the economic problem Questions

1.1 Economic methodology and the economic problem

Question 59

1.1 Economic methodology and the economic problem Questions