EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
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
Chapter 7 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- Suppose that you put an invisible tracking device on your computer that will instantly lead police to it if your computer is ever stolen. Does your purchase of the tracking device provide a positive or negative externality? What kind of externality do you provide when you purchase a visible computer lock in order to prevent theft?arrow_forwardWhich of the following is an example of negative externalities for Ari? Group of answer choices Ari’s neighbor plants a tree that provide shade for Ari’s house in the hot summers. Ari’s bought a car that keeps breaking down and is very costly to own. A power company builds a dam downstream from Ari’s property which causes Ari’s property to flood in case of heavy rain.arrow_forwarddraw a graph of a product without any externalityarrow_forward
- From CNN what news article represents an issue ragards to Externalities or that can be realted to externalities? Cite at least one source (News Article, Video, etc.) for any data. Explain: What is the Economic issue? (Describe the issue) What is the connection to Externalities? (positive, negative, policy) (Use Math, Graph or data to explain or support your idea) Explain how this affects the Economy (individual, industry, national or global)arrow_forwardwhy do externalities make market outcomes inefficient?arrow_forwardWhy are externalities considered a sign of market failure?arrow_forward
- The following scenarios are examples of externalities. Which is an example of a negative externality? Group of answer choices The local library decides to expand and in addition to the building structure creates a plaza with benches and three different types of fountains. A town adds recycling options for residents to be collected the same day as the trash. Electronic billboards were added in town advertising businesses. The digital advertisements are very, very bright and at night they shine over the city disturbing people’s sleep.arrow_forwardCan an activity generate both positive and negative externalities at the same time? Explain your answer.arrow_forwardA policymaker argues that if the roads were privately owned, then the externality of traffic congestion would be fully internalized and solved by the market. Discuss this by first explaining the externality problem that leads to congestion, and then explain whether the private market would deliver the efficient level of roads.arrow_forward
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