The negative and the positive externalities.

Question

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Answer 1

Question

Chapter 17, Problem 1RQ

To determine

The negative and the positive externalities.

Expert Solution & Answer

Explanation of Solution

When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality. An increased pollution is one of the best examples of negative externality which imposes costs on other people or firms who are not directly involved in it. On the other hand, the positive externality is a benefit conferred on the third parties who are not directly involved in an economic transaction. The education can be considered as an example of positive externality which provides the benefits to people who are not directly involved in it.

Economics Concept Introduction

Positive externality: The positive externality refers to the spillover of benefits to the third party other than the immediate market participants. Thus, the third person is benefited without paying for it.

Negative externalities: The negative externality refers to the spillover of costs to the third party other than the immediate market participants.

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Answer 2

Question

Chapter 17, Problem 1RQ

To determine

The negative and the positive externalities.

Expert Solution & Answer

Explanation of Solution

When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality. An increased pollution is one of the best examples of negative externality which imposes costs on other people or firms who are not directly involved in it. On the other hand, the positive externality is a benefit conferred on the third parties who are not directly involved in an economic transaction. The education can be considered as an example of positive externality which provides the benefits to people who are not directly involved in it.

Economics Concept Introduction

Positive externality: The positive externality refers to the spillover of benefits to the third party other than the immediate market participants. Thus, the third person is benefited without paying for it.

Negative externalities: The negative externality refers to the spillover of costs to the third party other than the immediate market participants.

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Answer 3

Question

Chapter 17, Problem 1RQ

To determine

The negative and the positive externalities.

Expert Solution & Answer

Explanation of Solution

When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality. An increased pollution is one of the best examples of negative externality which imposes costs on other people or firms who are not directly involved in it. On the other hand, the positive externality is a benefit conferred on the third parties who are not directly involved in an economic transaction. The education can be considered as an example of positive externality which provides the benefits to people who are not directly involved in it.

Economics Concept Introduction

Positive externality: The positive externality refers to the spillover of benefits to the third party other than the immediate market participants. Thus, the third person is benefited without paying for it.

Negative externalities: The negative externality refers to the spillover of costs to the third party other than the immediate market participants.

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Answer 4

Question

Chapter 17, Problem 1RQ

To determine

The negative and the positive externalities.

Expert Solution & Answer

Explanation of Solution

When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality. An increased pollution is one of the best examples of negative externality which imposes costs on other people or firms who are not directly involved in it. On the other hand, the positive externality is a benefit conferred on the third parties who are not directly involved in an economic transaction. The education can be considered as an example of positive externality which provides the benefits to people who are not directly involved in it.

Economics Concept Introduction

Positive externality: The positive externality refers to the spillover of benefits to the third party other than the immediate market participants. Thus, the third person is benefited without paying for it.

Negative externalities: The negative externality refers to the spillover of costs to the third party other than the immediate market participants.

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Answer 5

Chapter 17, Problem 1RQ

To determine

The negative and the positive externalities.

Expert Solution & Answer

Explanation of Solution

When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality. An increased pollution is one of the best examples of negative externality which imposes costs on other people or firms who are not directly involved in it. On the other hand, the positive externality is a benefit conferred on the third parties who are not directly involved in an economic transaction. The education can be considered as an example of positive externality which provides the benefits to people who are not directly involved in it.

Economics Concept Introduction

Positive externality: The positive externality refers to the spillover of benefits to the third party other than the immediate market participants. Thus, the third person is benefited without paying for it.

Negative externalities: The negative externality refers to the spillover of costs to the third party other than the immediate market participants.

Answer 6

Chapter 17, Problem 1RQ

To determine

The negative and the positive externalities.

Expert Solution & Answer

Explanation of Solution

When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality. An increased pollution is one of the best examples of negative externality which imposes costs on other people or firms who are not directly involved in it. On the other hand, the positive externality is a benefit conferred on the third parties who are not directly involved in an economic transaction. The education can be considered as an example of positive externality which provides the benefits to people who are not directly involved in it.

Economics Concept Introduction

Positive externality: The positive externality refers to the spillover of benefits to the third party other than the immediate market participants. Thus, the third person is benefited without paying for it.

Negative externalities: The negative externality refers to the spillover of costs to the third party other than the immediate market participants.

Answer 7

Chapter 17, Problem 1RQ

To determine

The negative and the positive externalities.

Answer 8

Expert Solution & Answer

Explanation of Solution

When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality. An increased pollution is one of the best examples of negative externality which imposes costs on other people or firms who are not directly involved in it. On the other hand, the positive externality is a benefit conferred on the third parties who are not directly involved in an economic transaction. The education can be considered as an example of positive externality which provides the benefits to people who are not directly involved in it.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Positive externality: The positive externality refers to the spillover of benefits to the third party other than the immediate market participants. Thus, the third person is benefited without paying for it.

Negative externalities: The negative externality refers to the spillover of costs to the third party other than the immediate market participants.

Answer 12

Ch. 17 - Prob. 1RQ Ch. 17 - Prob. 2RQ Ch. 17 - Prob. 3RQ Ch. 17 - Prob. 4RQ Ch. 17 - Prob. 5RQ Ch. 17 - Prob. 6RQ Ch. 17 - Prob. 7RQ Ch. 17 - Prob. 8RQ Ch. 17 - Prob. 9RQ Ch. 17 - Prob. 10RQ

The negative and the positive externalities.

Concept explainers

The negative and the positive externalities.

Explanation of Solution

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Chapter 17 Solutions