2. Sort these events and consequences into pairs. Match the free market transaction with the externality caused. Note that not all of the events are relevant – four items do not belong. | Neighboring bee-keeping Homeowner adds garage to their property Driving large SUVS business thrives with extra nectar More youth in neighborhood leads to more demand for more leisure Nightclub opens offering outside dance parties Increased traffic results in congestion activities Market for SUVS becomes Farmer starts apple orchard Increased air pollution flooded Contractor does not finish job Neighbor's ocean view is blocked Price of apples goes down due to increased supply leading to legal action Free market transaction Externality 1.

2. Sort these events and consequences into pairs. Match the free market transaction with the externality caused. Note that not all of the events are relevant – four items do not belong. | Neighboring bee-keeping Homeowner adds garage to their property Driving large SUVS business thrives with extra nectar More youth in neighborhood leads to more demand for more leisure Nightclub opens offering outside dance parties Increased traffic results in congestion activities Market for SUVS becomes Farmer starts apple orchard Increased air pollution flooded Contractor does not finish job Neighbor's ocean view is blocked Price of apples goes down due to increased supply leading to legal action Free market transaction Externality 1.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 4SCQ: What are the similarities between a consumers budget constraint and societys production...

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Similar questions

Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
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vidence accumulates that the use of chemical fertilizers, which increases agricultural production greatly, damages water quality. A) Explain in words how you would draw a production possibility curve to depict this (which “good” should be placed on each axis) and why your curve would have a particular shape. B) In what ways does the production possibilities curve from part a) reflect scarcity, choice and opportunity cost? C) Discuss THREE possible impacts of an improved fertilizer on the production possibility frontier from part a.