Economics 9708 · AS & A Level · 7.4

7.4 — practice question

A company sets up a new factory on unused land at the edge of a town. Which of the following will be included among the externalities resulting from the factory’s opening?

  • Aincrease in air pollution: no; increase in rents of neighbouring factory sites: no; change in appearance of the neighbourhood: yes
  • Bincrease in air pollution: no; increase in rents of neighbouring factory sites: yes; change in appearance of the neighbourhood: no
  • Cincrease in air pollution: yes; increase in rents of neighbouring factory sites: no; change in appearance of the neighbourhood: yes
  • Dincrease in air pollution: yes; increase in rents of neighbouring factory sites: yes; change in appearance of the neighbourhood: no

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