This document consists of 11 printed pages and 1 blank page. IB19 11_9708_32/2RP © UCLES 2019 [Turn over *9091355185* Cambridge Assessment International Education Cambridge International Advanced Subsidiary and Advanced Level ECONOMICS 9708/32 Paper 3 Multiple Choice October/November 2019 1 hour 15 minutes Additional Materials: Multiple Choice Answer Sheet Soft clean eraser Soft pencil (type B or HB is recommended) READ THESE INSTRUCTIONS FIRST Write in soft pencil. Do not use staples, paper clips, glue or correction fluid. Write your name, centre number and candidate number on the Answer Sheet in the spaces provided unless this has been done for you. DO NOT WRITE IN ANY BARCODES. There are thirty questions on this paper. Answer all questions. For each question there are four possible answers A , B , C and D . Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet. Read the instructions on the Answer Sheet very carefully. Each correct answer will score one mark. A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet.
2 © UCLES 2019 9708/32/O/N/19 1 Some multinational oil companies extracting oil in developing countries are now required to repair the damage they do to the environment. Which best describes the total costs incurred by the oil companies in such circumstances? Aexternal costs Bprivate costs plus external costs Csocial costs plus external costs Dsocial costs plus private costs 2In an economy, no one can be made better off without making someone else worse off. What does notnecessarily follow from this? 3A government decided to approve a road building scheme because it was socially beneficial. In making its decision it calculated private costs at $800m, private benefits at $800m and external costs at $150m. What musthave been true about the external benefits of the scheme? 4What is it called when a consumer’s marginal utility is greater than the price paid for the good?
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