Economists Consider Environmental Pollution to Be A(n)

question 29

Multiple Choice

Economists consider environmental pollution to be a(n)

• A)externality.
• B)pure public good.
• C)allocatively efficient outcome.
• D)public interest outcome.

---

Definitions:

Security Market Line

A representation in the Capital Asset Pricing Model (CAPM) that displays the risk versus expected return of the market at any given time.

Beta Coefficient

A measure of a stock's volatility or risk relative to the overall market.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free securities.