CAIE A-Level Economics A2 7.4.2 Social Benefits Questions

Practise distinguishing private, external and social benefits and applying positive-externality analysis to welfare outcomes in A2 questions.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Explain private, external and social benefits and apply positive externality analysis to welfare outcomes.

CAIE A-Level Economics A2 7.4.2 Social Benefits Questions question 1

[Maximum number: 1]

A traffic study concluded that there would be significant benefits if 10\% of car drivers switched to using motorcycles during peak traffic times.

Which benefit of this change would be considered a private benefit?

A

faster journeys for those who continued to go by car

B

faster journeys for those who switched to motorcycles

C

increased safety for cyclists

D

reduced levels of air pollution for pedestrians

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