Economics Multiple Choice Question – 15 June 2021

A project has a social cost of £100 million, a private cost of £40 million and an external benefit of £20 million. Its net social value is zero.

Select ONE answer:

1. External cost is greater than external benefit.
2. Private cost is greater than external cost.
3. Private cost is greater than private benefit.
4. Social cost is greater than social benefit.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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