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Economics · May / June 2021 · Paper 11 · Question 6

2281Market failure

What is an example of an external benefit from an individual cycling, rather than driving, to work?

  1. Ahigher cost of building cycle lanes
  2. Bimproved physical fitness to the individual from cycling
  3. Clower cost of cycling compared with driving to work
  4. Dreduced congestion for other road users

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Correct answer: D. reduced congestion for other road users

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