Externalities

Pollution caused by automobiles is an example of

• an innefficient allocation of resources.
• a positive externality.
• a negative externality.
• the public sector.

When a third party member is affected by the interaction of a buyer and seller, we call this

• An externality
• The tragedy of the commons
• consumer surplus
• total welfare

A ______ Externality occurs when a cost of production or consumption falls on a 3rd Party.

• Negative
• Neutral
• Positive

A ______ Externality occurs when a benefit of production or consumption falls on a 3rd Party.

• Negative
• Neutral
• Positive

Pollution released from a factory is an example of a ________ Externality

• Negative
• Neutral
• Positive

Getting a flu shot is an example of a ________ Externality

• Negative
• Neutral
• Positive

The Government seeks to encourage __________ Externalities.

• Negative
• Neutral
• Positive

The Government seeks to discourage __________ Externalities.

• Negative
• Neutral
• Positive

Receiving drain on your lawn from a neighbor's sprinkler system is an example of a 

• negative externality
• miracle
• positive externality
• merger

unintended side effect that either benefits or harms a third party not involved in the activity

• trust
• externality
• oligopoly
• monopoly