Consider a Housing Development Built near an Existing Airport

question 101

Multiple Choice

Consider a housing development built near an existing airport.After the houses are occupied,homeowners complain that the airport imposes a negative externality on them and it should be moved or otherwise limited.Is the airport a negative externality?

• A) No, the airport was there first.
• B) No, if the original property values reflect the costs imposed by the airport.
• C) No, airports are government entities and therefore don't impose costs on individuals.
• D) Yes, the airport's noise should be curtailed for the well-being of the homeowners.

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Definitions:

Acculturation Process

The process of cultural change and psychological change that results following meeting between cultures.

Social Interest

Adlerian concept referring to an individual's attitude towards and awareness of being a part of a community and the importance of cooperation and contribution to societal welfare.

Hostility

A state of feeling or acting antagonistic or aggressive towards others.

Self-Interest

The consideration of one's own advantage or well-being first, often used in economic theory to explain rational behavior.