Question

Question 4

Negative externalities tend to have which of the following characteristics?

		cost of externality to society is greater than the cost to an individual
		the social benefit of externality exceeds the social cost
		to cost to the individual is higher than the cost to society
		to benefit to the individual is equal to  the benefit to society
		none of the answer choices are correct

  

Question 5

Beverly the beekeeper decides to locate her mild mannered bees on a plot of land located between an avocado orchard and a middle school for teens with bad attitudes. A positive externality that could transpire is

		the bees helping to pollinate the orchard, leading to more fruit
		the bees enroll in school and learn how to read
		the honey the bees produce
		the possibility of the bees stinging teens who sag their pants too far below the waist
		the cost of the bee hives to Beverly, the beekeeper

Answer 1

Question 4

cost of externality to society is greater than the cost to an individual

The cost to the society will be much greater than the cost to the individual. For example, a firm may pay for the cost of pollution that it causes by way of electricity charges but the individuals living around the firm may pay a much higher cost due to the adverse effects of pollution.

Question 5

the bees helping to pollinate the orchard, leading to more fruit