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Question

Brisbane Airport is currently constructing a second runway to increase its capacity. The runway construction cost

will cost $1.3 billion. This increased capacity will have positive impacts on Queensland's tourism, the state and Australian economy.

Which of the following statements are true:


A. Brisbane Airport's decision to construct the runway creates a positive externality for hotel owners if they do not have to pay for the construction costs.


B. Brisbane Airport's decision to construct the runway does not create any positive externalities.


C. Brisbane Airport could use economic logic to justify receiving government funding to assist in building the second runway.


D. Brisbane Airport could not justify receiving government funding as the airport itself is privately owned and operated.

Top Answer

A. Brisbane Airport's decision to construct the runway creates a positive externality... View the full answer

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