06.02 What are Externalities Quiz (Economics) – Flashcards

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question
The state of Florida funds a program to recruit outstanding scholars and researchers to reduce pollutants in the Everglades and restore endangered species. Over time, area residents benefit from cleaner water resources, as well as from a thriving and unique ecosystem. Which of the following represent free riders in this example?
answer
Area residents
question
Which of the following would most likely constitute a negative externality affecting free resources?
answer
Groundwater pollution
question
"Fracking" is hydraulic fracturing, or an alternative method of drilling to obtain natural gas deposits. The federal government institutes a new energy policy that includes funding for fracking initiatives in eligible states. Which of the following would be a negative externality?
answer
Using the fracking method may pollute the water.
question
Which would be a negative externality of increased satellite usage worldwide?
answer
Space in Earth orbit will become cluttered with hazardous debris.
question
Sundar is preparing a research paper and has included the map above. His topic has to address negative externalities related to natural resources. Sundar is most likely writing a paper with which of the following titles?
answer
Humanity Spreads: Air Pollution and Deforestation
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