Match each of the following characteristics or scenarios with either the term negative externality or the term positive externality. lo4.4 a. overallocation of resources. b. tammy installs a very nice front garden, raising the property values of all the other houses on her block. c. market demand curves are too far to the left (too low). d. underallocation of resources. e. water pollution from a factory forces neighbors to buy water purifiers.

Explanation:

negative externality (NE)

positive externality (PE)

a. Overallocation of resources: NE

b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block. PE

c. Market demand curves are too far to the left (too low). NE

d. Under allocation of resources. PE

e. Water pollution from factory forces neighbors to buy water purifiers. NE

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.