Environmental Externalities Quiz

An effect of a market transaction that only impacts the buyer and seller

An effect of a market transaction that impacts the government

An effect of a market transaction that impacts the utility of those outside the transaction (correct)

An effect of a market transaction that impacts the environment

Improved living standards for workers

Higher profits for companies

Pollution caused by unregulated production decisions (correct)

Increased employment opportunities

By increasing the profits of the buyer and seller

By reducing the cost of production for companies

By providing additional benefits to those not involved in the transaction (correct)

By improving the government's revenue

<p>Companies will not account for the damages caused by pollution</p> Signup and view all the answers

<p>They provide benefits to those who appreciate the scenery and absorb carbon dioxide</p> Signup and view all the answers