Air Pollution Generated by a Paper Mill Factory Is an Example

question 41

Multiple Choice

Air pollution generated by a paper mill factory is an example of

• A)a positive production externality.
• B)a positive consumption externality.
• C)a negative consumption externality.
• D)diminishing returns.
• E)a negative production externality.

---

Definitions:

Flow Concept

A term used in economics and finance to describe quantities measured over a period of time, such as income or expenses.

Wealth

An abundance of valuable financial assets or physical possessions which can be transformed into forms that can be used for transactions.

Financial Assets

Assets that derive value from a contractual claim on future earnings or from owning equity in a company, such as stocks, bonds, or bank deposits.