For each of the following examples, identify whether a positive or negative externality is present and whether
Question:
For each of the following examples, identify whether a positive or negative externality is present and whether there will be too little or too much of the activity relative to the socially optimal outcome.
a. Jerome has a beautifully landscaped front lawn with lots of colorful flowers.
b. Dave takes advantage of the low price of gas to purchase a sports utility vehicle that gets low gas mileage.
c. Susan decides to walk to work instead of driving.
d. Anita decides to drink coffee on the bus while she rides to work and spills it on the person sitting next to her.
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