Economics 9708 · AS & A Level · 7.4

7.4 — practice question

The Airports Commission in the UK advised expanding airport X instead of airport Y. When weighing the social costs and benefits of this choice, what would be considered when working out the external cost?

  • Athe additional noise pollution suffered by residents local to airport X
  • Bthe financial loss suffered by airlines operating at airport Y
  • Cthe increase in profits of the firm operating airport X
  • Dthe monetary cost of the construction to expand airport X

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