Economics 9708 · AS & A Level · 7.4

7.4 — practice question

In 2008, Beijing hosted the Olympic Games and put up a new stadium and infrastructure. 1.5 million people were forced from their homes and moved a long way from the communities they had lived in. During the games, factories were shut to cut air pollution. At present, the stadium is a major tourist attraction, and the athletes’ accommodation is now used as apartments. Which group is most likely to have the greatest excess of marginal social benefit over marginal social cost?

  • 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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