Which of the Following Is an Example of an Externality

question 121

Multiple Choice

Which of the following is an example of an externality that has been internalized?

• A)Acid rain, originating in the United States, destroys Canadian forests.
• B)Robert Frost breathes the air that has been polluted by the emissions of a nearby steel plant.
• C)Erica Evans, a beekeeper, decides to keep more bees because her neighbor, an orchard owner, has agreed to compensate her for the bees' pollination of the orchard.
• D)Miguel Sanchez, a concert pianist, rehearses Beethoven's "Moonlight Sonata" and his neighbors enjoy the "free concert."

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Definitions:

Potential Investors

Individuals or entities that have the capability to invest capital in a project or company but have not yet committed to the investment.