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  • Card 9 / 20:
    Identify the following situations as an example of a negative or a positive externality:

    You are a birder (bird watcher), and your neighbor has put up several birdhouses in the yard as well as planting trees and flowers that attract birds.Your neighbor paints his house a hideous color.Investments in private education raise your country’s standard of living.Trash dumped upstream flows downstream right past your home.Your roommate is a smoker, but you are a nonsmoker.

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Source:  OpenStax, Openstax microeconomics in ten weeks. OpenStax CNX. Sep 03, 2014 Download for free at http://legacy.cnx.org/content/col11703/1.2
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