Table 1 shows estimated annual costs and benefits of extending a town's cycle network.
| Estimate | Annual value |
|---|---|
| Private benefits to cyclists | £6.4 million |
| External benefits | £7.2 million |
| Construction and maintenance cost | £8.9 million |
| External cost of disruption | £1.3 million |
Using Table 1, assess whether the cycle-network extension is likely to improve the allocation of resources.
83 exam-style questions on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.