5 Questions
What is an externality in a market transaction?
An effect of a market transaction that impacts the utility of those outside the transaction
Which of the following is an example of a negative externality?
Pollution caused by unregulated production decisions
How do positive externalities benefit society as a whole?
By providing additional benefits to those not involved in the transaction
What is the impact of unregulated markets on the consideration of social and ecological damages?
Companies will not account for the damages caused by pollution
How do trees planted by a landowner demonstrate a positive externality?
They provide benefits to those who appreciate the scenery and absorb carbon dioxide
Test your knowledge of environmental externalities with this quiz. Explore the concept of negative externalities and their impact on the environment. From pollution to market regulation, this quiz covers key concepts related to environmental externalities.
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