Question 1
The many types of pollution do
not include ________ pollution.
◦ air
◦ price
◦ water
◦ sound
Question 2
An externality is
◦ a cost or benefit resulting from some activity or transaction that is imposed or bestowed on parties outside the activity or transaction.
◦ the total cost to society of producing an additional unit of a good or service.
◦ the amount a consumer pays to consume an additional amount of a particular good.
◦ a problem intrinsic to public goods: The good or service is so costly that its provision generally does not depend on whether or not any single person pays.
