Question

All of the following are examples of negative externalities except Runoff of pesticides and fertilizers from a farm into a nearby river. A pulp mill that produces paper and pollutes the surrounding water and air. Increased pollination rates of surrounding crop plants as a result of local beekeeping. Global climate change as a result of greenhouse gas emissions from the burning of coal, oil, and gasoline. Acid deposition in the Adirondacks as a result of coal-burning power plants in the Midwest.

Answer 1

Answer:

Increased pollination rates of surrounding crop plants as a result of local beekeeping.

Explanation:

A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.

A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.

Coase theorem was developed in 1960 by a British economist and author named Ronald Coase.

Coase theorem states that when the actions of a party (X) negatively affects or harm another party (Y), then party Y should be able to create an incentive for party X to stop or limit the action creating such harm.

Generally, when transaction cost are low, the two parties are able to bargain and reach a mutual agreement in the presence of an externality such as a pollution.

Answer 2

Answer:

Increased pollination rates of surrounding crop plants as a result of local beekeeping.

Explanation:

Hope this helps