Which of the following is an example of an activity that creates a positive externality?

a. an iron smelting factory emits sulfur dioxide into the air
b. the owner of a steamboat company dredges a river in order to improve navigation
c. a group of investors starts a business specializing in transporting goods via clipper ship
d. flatboat operators purchase steamboat tickets in order to return to their homes upstream

b. the owner of a steamboat company dredges a river in order to improve navigation

Economics

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M1 is larger than M2

Indicate whether the statement is true or false

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In the figure above, ceteris paribus, an increase in x is associated with

A) an increase in y. B) a decrease in y. C) an increase in z. D) a random change in z. E) no change in either y or z.

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