Which of the following would be classified as a situation where a third-party benefits from a market transaction by others? a. City buying 10,000 trees for green space renewal projects. b. Increased levels of air pollution in neighborhoods near a football stadium. c. Allowing a mining company to use a natural lake to discharge waste. d. Two firms trading pollution credits to avoid cutting their toxic emissions.

Which of the following would be classified as a situation where a third-party benefits from a market transaction by others? a. City buying 10,000 trees for green space renewal projects. b. Increased levels of air pollution in neighborhoods near a football stadium. c. Allowing a mining company to use a natural lake to discharge waste. d. Two firms trading pollution credits to avoid cutting their toxic emissions.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 3PA

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