Examlex
Which of the following uses of proceeds from private activity bonds will most likely qualify those bonds as federally tax-exempt?
I. public airport runway
II. baseball stadium
III. multifamily housing project
IV. mass rail transit
Economic Efficiency
A situation where all resources are allocated in a way that maximizes the total benefit to society or minimizes waste.
External Cost
A cost that a transaction or activity imposes on a party who is not involved in the transaction, often not reflected in market prices.
Negative Externality
A cost that affects a party who did not choose to incur that cost, often associated with environmental, health, and safety concerns of public and private actions.
Positive Externality
A benefit that is enjoyed by a third-party as a result of an economic transaction.
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