EBK PRINCIPLES OF MICROECONOMICS (SECON
EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 7, Problem 2SP

(a)

To determine

Whether the activities of late-night road construction create a negative or positive externality.

(b)

To determine

Whether the activity of an excavating company polluting a local stream with acid rock creates a negative or positive externality.

(c)

To determine

Whether the activity of a house owner whose property backs up on a city park enjoying the sounds of kids creates a negative or positive externality.

(d)

To determine

Whether the activity of a student using cell phone during class creates a negative or positive externality.

(e)

To determine

Whether the activity of planting a wild flower along the local highway creates a negative or positive externality

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3:01 2. Indicate whether the following activities create a positive or negative externality: a. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place. b. An excavating company pollutes a local stream with acid rock. c. A homeowner whose property backs up on a city park enjoys the sound of kids playing soccer. d. A student uses her cell phone discreetly during class. e. You and your friends volunteer to plant wildflowers along the local highway. ← + 8
What are externalities; and how the government can fix it
Identify a positive externality
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