The idea that "externalities arise because something of value has no price attached to it" is associated with
A)public goods, but not with common resources.
B)common resources, but not with public goods.
C)both public goods and common resources.
D)neither public goods nor common resources.

Question

Quizplus · Accepted Answer

Both public goods and common resources can have externalities because they are both types of goods that are non-exclusive in consumption. In other words, individuals can enjoy the benefits without paying for them (or paying the full cost), leading to externalities. The statement that "externalities arise because something of value has no price attached to it" is a general principle that applies to both public goods and common resources.

The Idea That "Externalities Arise Because Something of Value Has