Maxwell
bow peasants
he means he get band 4 for eco.
ANYWAY, is someone willing to give a shot at the original question?
Here it is: A highway currently passes through a country town. The government is proposing to build a bypass that diverts highway traffic away from the town. Discuss the costs and benefits of this proposal. (four marks)
i) Costs: With less motor-vehicle traffic comes less demand for the town's products. Consequently, local business cessation may result, thereby increasing the local level of unemployment. This creates a greater reliance on transfer payments, which will in turn put downwards pressure on the budget. Another cost would be the negative externalities associated with the construction of the actual highway itself, as generally production results in the emission of CO2.
ii) Benefits: Assuming the bypass shortens the trip-time, this will facilitate the movement of goods in the economy, thus increasing aggregate supply in the long-run. This will increase real-incomes and lead to a rise in living standards, as these factors are correlated with economic growth. Another benefit would be the multiplier effect of the actual production of the bypass, which, depending on the marginal propensity to save of the economy, will generally result in an increase in national income. As a result, living standards and real-income levels increase.
Idk if i wrote enough for 4 marks, but meh.
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