New Homes Built by the Airport Suffer from Noise Pollution

question 24

Multiple Choice

New homes built by the airport suffer from noise pollution created by a change in air-traffic patterns.If compensation is paid to the homeowners,_____.

• A)they will internalize the externality
• B)they will use the money to buy soundproofing for their homes
• C)it should be equal to the marginal cost of their harm
• D)it will reduce or eliminate any incentive to avoid the problem

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Definitions:

Andrew Johnson

The 17th President of the United States, who served from 1865 to 1869, significant for his turbulent presidency and impeachment after the American Civil War.

Bill Clinton

The 42nd President of the United States who served from 1993 to 2001.

Federal Building

A building owned or leased by the federal government of a country, often housing government offices.