Which of the following describe(s) a situation in which a third party, outside the transaction, suffers from a market transaction?

SELECT ALL THAT APPLY:

A. spillover

B. negative externality

C. a market failure

A cost imposed on others outside of any market exchange is:

SELECT ALL THAT APPLY:

A.an external cost.

B. leads to underproduction of the good/service in question.

C.leads to overproduction of the good/service in question.

D. not taken into account by those imposing the cost.

If pollutants are emitted into the air and water, what costs might be incurred as a result?

SELECT ALL THAT APPLY

A. loss from destruction of wildlife habitat

B. decreased property values

C. compromised recreation possibilities

Using the term "spillover" is a less formal means of describing:

A. market failure.

B. an externality.

C. social costs.

D. private costs.

A positive externality arises when a third party, outside the transaction, ________.

A. benefits from a market transaction

B. fails to allocate resources efficiently

C. pays a pollution tax to balance social costs