A coastal authority owns a site that can either be restored as salt marsh or leased for a warehouse. The authority has made the following annual estimates.
| Estimate | Amount |
|---|---|
| Flood repair costs avoided if the salt marsh is restored | £480,000 |
| Cost of maintaining the restored salt marsh | £140,000 |
| Rent received if the site is leased for a warehouse | £300,000 |
Calculate the expected annual net economic gain to the coastal authority from restoring the salt marsh rather than leasing the site for a warehouse.
77 exam-style questions on OCR GCSE Economics 1.2 The basic economic problem, covering 1.2.1 Scarce resources and unlimited wants, 1.2.2 The economic problem, 1.2.3 Opportunity cost, and 1.2.4 Costs and benefits of economic choices. Each one has a worked solution and a mark scheme showing where the marks go.