2. Indicate whether the following activities create a positive or negative externality: a. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place. b. An excavating company pollutes a local stream with acid rock. c. A homeowner whose property backs up on a city park enjoys the sound of kids playing soccer.

2. Indicate whether the following activities create a positive or negative externality: a. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place. b. An excavating company pollutes a local stream with acid rock. c. A homeowner whose property backs up on a city park enjoys the sound of kids playing soccer.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 1P

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