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1. Do the following activities created a positive or negative externality?
1. Do the following activities created a positive or negative externality?
A) Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place.
B) An excavating company pollutes a stream with acid rock.
C) A homeowner whose property backs up on a city park enjoys the sound of kids playing soccer.
D) You and your friends volunteer to plant flowers along the local highway.
2. A city is considering expanding a frequently traveled road from two lanes to four lanes. This road passes through the center of the city. What negative externalities and positive externalities might the expansion create, once it is finished?
