Question

Identify the following situations as an example of a negative or a positive externality: a. You are a birder (bird watcher), and your neighbor has put up several birdhouses in the yard as well as planting trees and flowers that attract birdsb. Your neighbor paints his house a hideous color.

c. Investments in private education raise your country's standard of living.
d. Trash dumped upstream flows downstream right past your home.
e. Your roommate is a smoker, but you are a nonsmoker

Answer 1

A. Positive Externality

Step-by-step explanation: If you are a bird watcher then it is positive for you that your neighbor has done many things to attract birds.

B. Negative Externality

Explanation: Since the color is described as hideous it's most likely not liked, therefore there are negative feelings towards it.

C. Positive Externality

Explanation: This is positive because it improves safety, environmental conditions, comfortability and more.

D. Negative Externality

Explanation: Trash that flows downstream right past your home is not a positive thing.

E: Negative Externality

Step-by-step explanation: Your roomate would be harming themself and you would be passive smoking/secondhand I assume, which is even unhealthier then smoking.

I hope this helps :)