Question 2 Which of the following statements is true? OExternalities exist when the private costs and private benefits associated with an economic activity differ. O Social benefits are the sum of the private property rights of an economic activity and the external benefits. O Social benefits are benefits of production or consumption that accrue to everyone in society, including those who are not directly involved in the economic activity. OExternalities exist when there are only private costs or benefits associated with an economic activity. Question 2 of 28

Question 2 Which of the following statements is true? OExternalities exist when the private costs and private benefits associated with an economic activity differ. O Social benefits are the sum of the private property rights of an economic activity and the external benefits. O Social benefits are benefits of production or consumption that accrue to everyone in society, including those who are not directly involved in the economic activity. OExternalities exist when there are only private costs or benefits associated with an economic activity. Question 2 of 28

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 42P: Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the...

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