Can somebody explain why the answer is D (in the markscheme) not B ? It's Economics P1 May/June 2009
thanks in advance
15. A town council estimated the costs and benefits of operating a bus service in 2006 and 2007.
These are shown in the table.
2006 2007
$000 $000
private costs 2000 2200
external costs 500 900
private benefits 1500 2300
external benefits 1000 800
What can be concluded from the table?
A Between 2006 and 2007, social costs fell and social benefits rose.
B Between 2006 and 2007, social costs rose and social benefits fell.
C In both years, positive externalities exceeded negative externalities.
D In both years, social costs equalled social benefits.
thanks in advance
15. A town council estimated the costs and benefits of operating a bus service in 2006 and 2007.
These are shown in the table.
2006 2007
$000 $000
private costs 2000 2200
external costs 500 900
private benefits 1500 2300
external benefits 1000 800
What can be concluded from the table?
A Between 2006 and 2007, social costs fell and social benefits rose.
B Between 2006 and 2007, social costs rose and social benefits fell.
C In both years, positive externalities exceeded negative externalities.
D In both years, social costs equalled social benefits.