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Author Question: What is an externality? How are positive externalities different from negative externalities? ... (Read 191 times)

dollx

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on: Jun 29, 2018
What is an externality? How are positive externalities different from negative externalities?
 
  What will be an ideal response?

Question 2

If the Fed increases interest rates, other things remaining the same, foreigners demand ________ dollars, thereby ________ the exchange rate.
 
  A) more; decreasing
  B) fewer; increasing
  C) the same number of; not affecting
  D) fewer; decreasing
  E) more; increasing


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flannelavenger

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Reply #1 on: Jun 29, 2018
Answer to Question 1

An externality is a by-product of an activity that hurts or helps someone who is not involved in that activity. A negative externality imposes a burden or cost on others. A positive externality confers benefits on others.

Answer to Question 2

E


dollx

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

AngeliqueG

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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