Pete Throws Leftover Bread onto His Front Lawn Because He

question 17

Multiple Choice

Pete throws leftover bread onto his front lawn because he enjoys watching the pigeons feeding. His neighbor John is not happy about the pigeons, since they leave a mess on his property. This is an example of:

• A) a negative externality.
• B) a public good.
• C) privatization.
• D) third-party benefits.
• E) well-defined property rights.

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Definitions:

Advantages

Benefits or strengths that give an entity a favorable or superior position relative to competitors or alternatives.

Disadvantages

The negative aspects or conditions that can lead to unfavorable outcomes or reduce effectiveness in a given context.

Efficient Tax

A tax imposed in such a way that it creates the least possible distortion or inefficiency in the market or economy.

Costs Of Taxes

The economic burdens and inefficiencies that taxes impose on individuals and markets, including the distortion of consumer and producer behavior.