Asked by
Sudeep Panigrahi
on Nov 05, 2024
Verified
Which of the following is an example of an external benefit?
A) More people start to ride the bus because they become more public‐spirited and, as a result, air pollution is reduced.
B) Firms are able to reduce their costs of production by using a more efficient technology.
C) The federal government spends a million dollars on improving national parks.
D) A firm has just gotten permission to open a landfill on property that is adjacent to your home.
External Benefit
A positive effect on a party who did not choose to incur that benefit, often associated with public goods or services.
Public‐spirited
Exhibiting a selfless concern for the well-being of the community and the willingness to act for the public good.
Air Pollution
The presence of substances in the atmosphere that are harmful to the health of humans and other living beings or cause damage to the climate or materials.
- Pinpoint the causes of market malfunction, including but not limited to externalities, public goods, and insufficient information.
Verified Answer
OG
Learning Objectives
- Pinpoint the causes of market malfunction, including but not limited to externalities, public goods, and insufficient information.