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Economics (AS & A Level) · May / June 2024 · Paper 32 · Question 3

9708Private costs and benefits, externalities and social costs and benefits

Which combination of costs and benefits will lead to an increase in net social costs?

  1. Aprivate benefits falls; external benefits falls; private costs no change; external costs no change
  2. Bprivate benefits no change; external benefits increases; private costs falls; external costs no change
  3. Cprivate benefits no change; external benefits increases; private costs falls; external costs falls
  4. Dprivate benefits increases; external benefits increases; private costs no change; external costs falls

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Correct answer: A. private benefits falls; external benefits falls; private costs no change; external costs no change

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