Multiple Choice
Exhibit 15-1
-Suppose that people value the continued presence of certain species of animals in rural areas, but home-building in those areas reduces the populations of the animals. Home-building creates
A) a positive externality.
B) a negative externality
C) a positive internality.
D) a negative internality.
E) a free-rider problem.
Correct Answer:

Verified
Correct Answer:
Verified
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