Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 1
9708Private costs and benefits, externalities and social costs and benefits
The generation of electricity causes external costs. Who bears these external costs?
- Athe distributors who sell the electricity
- Bthe electricity company that produces the electricity
- Cthe government that subsidises the production of electricity
- Dthe people living in the area where the electricity is generated
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Correct answer: D. the people living in the area where the electricity is generated
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