Multiple Choice
Which of the following provides an example of an externality?
A) The air pollution generated when you drive your car.
B) The view that passersby and neighbors enjoy when observing your rose garden.
C) The free concerts neighbors hear when an accomplished musician practices at home.
D) All of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q122: A pollution tax:<br>A)increases the price of the
Q123: If a negative externality results from the
Q124: The imposition of a per-unit tax on
Q125: Exhibit 8-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 8-2
Q126: A free-rider problem arises whenever:<br>A)goods cannot be
Q128: If there are significant external costs associated
Q129: Nick owns a dog whose barking annoys
Q130: The tendency of those who are insured
Q131: If the government tried to implement a
Q132: A technology spillover occurs when one firm's