Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 9
9708Private costs and benefits, externalities and social costs and benefits
A city council is considering building a passenger terminal at its port so that the city can benefit from large cruise ships that could then dock there. It undertakes a cost–benefit analysis. What would be included as an external cost in the city council's cost–benefit analysis?
- Athe cost of a ticket for a passenger to travel on a cruise ship
- Bthe cost of fuel to operate the cruise ships
- Cthe costs paid by cruise ships when they dock at the port
- Dthe cost to a fishing fleet of relocating to another port
As printed in the paper
Show the answer
Correct answer: D. the cost to a fishing fleet of relocating to another port
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.