Economics · May / June 2018 · Paper 11 · Question 6

A government approved the construction of a new railway line connecting major cities. It would be built by a private company but be funded partly through taxation. It would create many jobs. People living on the route worried about the harm to their environment. Which concepts are directly involved in this statement?

1. Aexcess demand and public corporation
2. Bgovernment subsidies and perfect competition
3. Cmarket system and income distribution
4. Dprivate benefit and external cost

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