Economics 9708 · AS & A Level · 7.4

7.4 — practice question

In 2008, Beijing hosted the Olympic Games and constructed a new stadium and supporting infrastructure. 1.5 million people were forced to leave their homes and were moved far from their communities. Factories were shut during the games in order to reduce air pollution. Today, the stadium is a major tourist attraction, and the athletes’ accommodation is now 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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