Question

what are the economic cost and benefits of building a sports stadium in a given location?

Answer 1

Building a sports stadium may apparent seem to be wastage of resources that could have been utilized to build a factory , but it reality it can help spur economic growth . The economic costs involved in building a sports stadium are the accounting costs of building material , subsidy , labor etc , also it includes economic costs or opportunity costs of next best alternative . The land used , the connectivity system in the location are also costs .

Now the benefits are innumerable . Firstly a sports stadium will earn revenue from people who buy tickets . Secondly people find jobs due to the stadium , local players get opportunity to play , people are hired for stadium maintainance and organizing events etc . Also a parallel economy develops around the stadium , people selling fast food etc to people who visit the stadium . A stadium may attract foreigners or tourists and generate revenue .