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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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