Which Would Be the MOST Likely Place to Find an Internalized

question 189

Multiple Choice

Which would be the MOST likely place to find an internalized externality? (Keep transaction costs in mind.)

• A) a factory polluting the air surrounding a large suburb
• B) a wind farm slightly disturbing the mountain view of a nearby city
• C) a paper mill polluting a stream that only flows into a single farm
• D) roadwork operating on a major highway, but only operating at night

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Definitions:

Sexual Interest

An aspect of human sexuality referring to a person's desire or attraction toward others or specific sexual activities.

Fidelity

The quality of being faithful or loyal to a set of beliefs, an individual, or an obligation.

Normal Features

Characteristics or properties that are regularly found in a natural, unaltered state or condition.

Attractive

Possessing qualities that draw attention or admiration in a positive way, often used in the context of physical appearance or personality.