Question 1
Your next-door neighbor has a beautiful rose garden, but you are allergic to roses and cannot use your yard because of the rose pollen that drifts into your yard. In this case, the rose garden is an example of a
◦ public good.
◦ good that imposes an external cost.
◦ good that provides an external benefit.
◦ Pareto good.
Question 2
Which of the following is an example of an external benefit?
◦ More people start to ride the bus because they become more public‐spirited and, as a result, air pollution is reduced.
◦ Firms are able to reduce their costs of production by using a more efficient technology.
◦ The federal government spends a million dollars on improving national parks.
◦ A firm has just gotten permission to open a landfill on property that is adjacent to your home.
scanning electron micrograph showing an ovum (pink) released by the ovary at ovulation surrounded by
External view of the right eye.
External ear.
External oblique
Summary of Coordination of Benefit Rules