Economics (AS & A Level) · May / June 2023 · Paper 32 · Question 12
9708Private costs and benefits, externalities and social costs and benefits
A government hopes to build an athletics stadium to hold the World Games. The stadium would have high private and external costs, but it would increase national pride. Why would it be difficult to use cost-benefit analysis to decide whether to build the stadium?
- AThe materials needed to build the stadium will need to be imported.
- BThe external costs of clearing land for building will outweigh the private costs.
- CThe stadium will not be used much for athletics after the World Games.
- DThe valuation of national pride will be complex to assess.
As printed in the paper
Show the answer
Correct answer: D. The valuation of national pride will be complex to assess.
Sit this whole paper →More on Private costs and benefits, externalities and social costs and benefits
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.