Economics · Oct / Nov 2025 · Paper 12 · Question 9

A bridge is built over a river which enables journey times to be reduced. The table shows costs and benefits of building the bridge. | | $000 | |---|---| | private benefit | 12 | | private cost | 10 | | external benefit | 8 | | external cost | 5 | Which calculation represents social benefit?

1. A$12000 – $10000 = $2000
2. B$8000 – $5000 = $3000
3. C$12000 + $5000 = $17000
4. D$8000 + $12000 = $20000

As printed in the paper