Microeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 2

You are considering whether to enter a holiday lights display contest that pays $1,000 to the winner. State whether each of the following constitutes private costs, private benefits, external costs, or external benefits. Check all that apply.
a. Increased traffic congestion and difficulty parking on your street.
b. Increased electric bill from the holiday lights.
c. Winning the holiday lights display contest.