Economics · May / June 2017 · Paper 12 · Question 6

A bee-keeper maintains hives of bees to produce honey. The bees can pollinate neighbours’ fruit trees but also give a painful sting to gardeners. If both of these events occur, how will costs and benefits be affected?

1. AExternal benefits will fall and social costs will fall.
2. BExternal costs will rise and social benefits will fall.
3. CSocial costs and social benefits will fall.
4. DSocial costs and social benefits will rise.

As printed in the paper