Economics · Oct / Nov 2018 · Paper 12 · Question 6

Coal production in the UK has declined in recent years. One reason given for this is that the social cost of coal production is too high. What best describes the social cost of coal production?

1. Aall the benefits of coal production minus all the costs of coal production
2. Bthe cost of the environmental damage caused by coal production
3. Cthe cost to the government of subsidising the coal industry
4. Dthe private costs of coal production plus the external costs of coal production

As printed in the paper