Exhibit 15-1 -Suppose That People Value the Continued Presence of Certain Species

question 111

Multiple Choice

Exhibit 15-1
-Suppose that people value the continued presence of certain species of animals in rural areas, but home-building in those areas reduces the populations of the animals. Home-building creates

• A)a positive externality.
• B)a negative externality
• C)a positive internality.
• D)a negative internality.
• E)a free-rider problem.

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Definitions:

Israel

A country in the Middle East, established in 1948, known for its historical, religious, and cultural significance.

Social Class

refers to the division of society into groups based on economic, educational, and professional characteristics, influencing individuals' lifestyles, behaviors, and opportunities.

Designer Clothing

Apparel created by a well-known fashion designer, often characterized by high quality, exclusivity, and high price.

Luxury Vehicles

High-end vehicles that offer superior comfort, features, and performance compared to standard automobiles.