Economics 2281 · O Level · Economic growth

Economic growth — practice question

A company that supplies water spent $470\text{ million}$ building a system of pipes to distribute water more efficiently. It used local workers and improved the local economy. It also gave the tourist industry better facilities. What cannot be concluded from the information above?

  • AThe company increased its profits.
  • BThere was a decrease in regional unemployment.
  • CThere were fixed costs of $470\text{ million}$.
  • DThere were positive externalities.

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