Answered

Drag the tiles to the boxes to form correct pairs.

Match the scenarios with the economic concepts they illustrate.

1. Positive Externality
A new factory in a village provides livelihoods for the villagers.

2. Substitution Effect
The rising price of gold causes people to buy silver jewelry instead.

3. Negative Externality
A new factory in a village causes noise pollution.

4. Income Effect
When the price of gas increases, people drive less.



Answer :

GinnyAnswer

Final answer:

Negative and positive externalities explained with real-world examples like noise pollution and job creation from a new factory.


Explanation:

Negative externality: A new factory in a village causes noise pollution.

Positive externality: A new factory in a village provides livelihoods for the villagers.

Substitution effect: The rising price of gold causes people to buy silver jewelry instead.


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