Quiz 10: Externalities and Property Rights

Statistics

C Explanation: An external cost,also called a negative externality,is a cost of an activity that falls on people other than those who pursue the activity.

C Explanation: An external cost,also called a negative externality,is a cost of an activity that falls on people other than those who pursue the activity.One person's speeding imposes costs on others.

B Explanation: An external benefit,also called a positive externality,is a benefit of an activity that is felt by people other than those who pursue the activity.