Which of the Following Is a Positive Externality

question 30

Multiple Choice

Which of the following is a positive externality?

• A) Sam dug a pond so he could go fishing, but the pond has contributed to an explosion of mosquitoes in your neighborhood.
• B) Sam has dozens of cats, and they come into your yard to hunt the birds that come to your birdbath.
• C) Sam buys a dilapidated house, renovates it, and increases the property values of all houses in the neighborhood.
• D) Liquid waste from Sam's chicken farm flows into a neighbor's well water.

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Definitions:

Debt Market

A financial market where participants can issue and trade debt securities, often used by corporations and governments to finance their operations.

Derivatives Market

A market where financial instruments such as futures, options, and swaps are traded, whose value is derived from the value of an underlying asset.

Tertiary Market

A smaller and less accessible segment of the financial market where lesser-known securities are traded.

Financial Manager

A professional responsible for the financial health of a corporation, overseeing investment strategies, financial reporting, budgeting, and analysis to support executive decision-making.