Use the Information Below to Answer the Following Question

question 10

Multiple Choice

Use the information below to answer the following question.
Fact 1.3.1 Costs Soar for London Olympics
The regeneration of East London,the site of the 2012 Olympic Games,is set to add extra £1.5 billion to taxpayers' bill.
Source: The Times,London,July 6,2006
-Refer to Fact 1.3.1.The cost of regenerating East London ________ an opportunity cost of hosting the 2012 Olympic Games ________.

• A)is not;because few people attending the 2012 Olympics will spend much time outside Olympic venues
• B)is;if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics
• C)is;if the regeneration of East London would not occur unless London hosted the 2012 Olympics
• D)is not;because regenerating East London is an unnecessary expense
• E)is;if the property taxes of people living in East London increase

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Definitions:

Investment Projects

Initiatives or plans undertaken by individuals or organizations to allocate resources with the expectation of generating future profits.

Budget Set

The collection of all possible bundles of goods and services that a consumer can afford given their income and the prices of goods.

Interest Rate

The amount of a loan that is subject to interest charges for the borrower, typically expressed as an annual percentage of the current loan balance.

Consumption

Households' practice of using goods and services.