The table below indicates the estimated private and external costs and benefits resulting from a proposed high-speed rail development.
| Category | £ million |
|---|---|
| Private benefit | 250 |
| Private cost | 280 |
| External benefit | 150 |
| External cost | 190 |
Using the data above, the social cost minus the social benefit equals:
£30 million
£40 million
£70 million
£110 million
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.