How does the social problem of positive externalities differ from the problem created by negative externalities?
A) Positive externalities can create free-rider problems; negative externalities do not.
B) Positive externalities are created by altruistic people; negative externalities are not.
C) Negative externalities can create free-rider problems; positive externalities do not.
D) Negative externalities are created by selfish people; positive externalities are not.
E) Trick question: neither positive nor negative externalities create a social problem.
A
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The long-run aggregate supply curve is ________, while the long-run Phillips curve is ________
A) vertical; also vertical B) positively sloped; negatively sloped C) positively sloped; positively sloped D) vertical; negatively sloped
Public goods
A) are overproduced by unrestrained markets. B) are simply private goods that the government provides. C) cannot be consumed by more than one person without the degradation of the value of the good. D) can be consumed by more than one person without degradation of the value of the good.