Economics · May / June 2016 · Paper 12 · Question 6

Developers want to increase the size of a major retail shopping area in a city. It is thought that the proposal would create hundreds of jobs, be profitable for the shops but cause major traffic congestion. What economic concepts are directly involved in this statement?

1. Aexternal cost and private benefit
2. Bincome distribution and inelastic demand
3. Cprivate investment and a decrease in supply
4. Dsocial benefit and perfect competition

As printed in the paper