Economics (AS & A Level) · May / June 2021 · Paper 33 · Question 3
9708Private costs and benefits, externalities and social costs and benefits
In 2008 Beijing held the Olympic Games and built a new stadium and infrastructure. 1.5 million people lost their homes and were relocated far away from their communities. Factories were closed during the games to reduce air pollution. Today, the stadium is a major tourist attraction and the athletes' accommodation is used as apartments. For which group is the likely excess of marginal social benefit over marginal social cost the greatest?
- Aconstruction workers who built the site
- Bfactory workers who returned to their jobs after the games
- Cresidents who were rehoused far away from Beijing
- Dthose who live in the former athletes' accommodation
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Correct answer: D. those who live in the former athletes' accommodation
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