Question

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Which of the following items demonstrate poor choices made by private property owners? Select all that apply.

A privately-owned chicken farm deposits the majority of chicken poop into the river that flows through the property.
A wind farm is installed on the property of a factory warehouse to provide for cheap and efficient electricity for the workers.
A family piles its garbage bags in the adjacent empty lot to clear their yard of any debris.
Solar panels are installed in the parking lot of a private school to shade cars from harsh weather while providing electricity to the school.
A family that owns a small yard raises chickens to help keep the scorpion population down, then sells the eggs at a local market.

Answer 1

It would be the first one, third one,

Answer 2

The correct answer is: "A privately-owned chicken farm deposits the majority of chicken poop into the river that flows through the property."

The economic activity of the chicken farm is generating a negative externality, which is the denomination used to refer to a cost beared by an external party as a result of an economic activity.

The economic activity of the farm consists on raising chicken but, meanwhile, the farm generates pollution and damages the purity of the water in the river, which is a public good and should be kept in good condition to be used by other economic agents as well.